TY - RPRT AU - Bauer, Anahid AU - Guerrico, Sofía Fernández TI - Effects of E-commerce on Local Labor Markets PY - 2023/Jul/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 16345 UR - https://www.iza.org/publications/dp16345 AB - 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. KW - e-commerce KW - retail KW - employment KW - Amazon Tax ER -