%0 Report %A Bauer, Anahid %A Guerrico, Sofía Fernández %T Effects of E-commerce on Local Labor Markets %D 2023 %8 2023 Jul %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 16345 %U https://www.iza.org/publications/dp16345 %X This paper studies the effect of e-commerce on local labor markets. We exploit cross-market variation in e-commerce price advantage stemming from the enactment of the Amazon Tax-state-level legislation that mandates state sales taxes collection to out-of-state online retailers. Introducing out-of-state sales taxes lowered employment and reduced wages in transportation and warehousing, industries complementary to e-commerce. Within the in-state retail sector, the decline in brick-and-mortar employment is somewhat offset by an increase in employment in warehouse clubs and supercenters. Our results are consistent with a general equilibrium model in which consumers substitute e-commerce for big-box purchases, crowding out brick-and-mortar retail. %K e-commerce %K retail %K employment %K Amazon Tax