@TechReport{iza:izadps:dp17323,
            	author={Lehner, Lukas and Parolin, Zachary and Pignatti, Clemente and Schmitt, Rafael Pintro},
            	title={Monopsony Power and Poverty: The Consequences of Walmart Supercenter Openings},
            	year={2024},
	month={Sep},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={17323},
            	url={https://www.iza.org/publications/dp17323},
	abstract={Prior research suggests that Walmart Supercenters exert substantial power over the low-wage labor market, though the consequences of Supercenter openings on household incomes and public finances are less clear. This study uses restricted-access Panel Study of Income Dynamics data from 1970 to 2019 to study how Walmart Supercenter openings affect poverty, tax liabilities, and receipt of income transfers. Using a stacked difference-in-differences approach, we find that the opening of a Supercenter leads to a 2 percentage point (16%) increase in poverty. This increase is channeled through declining annual earnings and persists for 10 years following the Supercenter's entry. Increases in poverty are particularly strong for younger and less-educated adults, and for adults with pre-treatment incomes below the national median. Moreover, Walmart Supercenter openings lead to a $200 (or 16%) per household per year increase in government income transfers received, and a $920 (or 5%) per household per year decrease in tax revenues.},
	keywords={poverty;monopsony power;Walmart;local labor markets;economic inequality},
            }