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Spring 2007
ISSN 0890-913X
Volume 22, Number 2

Job Turnover and Wages in the Retail Sector: The Influence of Wal-Mart

Michael J. Hicks, Marshall University
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JournalofPrivateEnterprise,SpecialIssue,VolumeXXII,Number2,Spring2007JobTurnoverandWagesintheRetailSector:TheInfluenceofWal-MartMichaelJ.Hicks'AirForceInstituteofTechnologyandMarshallUniversity"Wal-Martismakingenormousprofitsandyetithaschosentogowithlowwagesanddiminishedbenefits...ThebattletoengageWal-Martandforcethemtoexaminetheircorporatevaluesandpoliciesisabsolut4vitaltoAmericatoday."SenatorBarackObama,November16,2006Rarelyhasasinglecorporationexperiencedthewidespreadscrutinyofitsbusinesspracticesandimpactonlocalcommunities,businessesandworkers,ashasWal-Mart.Indeed,itisdifficulttooverstatethetoneandbreadthofthecurrentdebate.ThatatleastthreeUnitedStatesSenatorshavespecificallycriticizedWal-MartsintheweeksleadinguptotheirentranceinthepresidentialracespeakstocriticalityoftheWal-Martdebate.Disclosure:TheauthorofthisstudyownsnostockinWal-Martoranyrelatedfirm(otherthanthatheldbythemutualfundcompaniesVanguardandTIAA-CREF).Ihaveperformednopaidconsultingservicesfromanyretailfirm,itsdevelopers,localgovernmentsorrelatedentitiessince2002(thoughIcontinuetofieldfrequentquestionsonmyearlierresearch).IhavereceivednohonorariarelatedtoWal-Martresearch(otherthantravelcostspaidbytheFederalReserveBankofRichmondin2001).Inshort,exceptforroughly$1,500purchasesofdiapersannualsince1999IhavenofinancialrelationshipwithWal-MartoranyaffiliatethatIamawareof.DiscussionsurroundingWal-Martfocusesheavilyontheroletheretailerplaysinlocalemploymentdynamics,especiallywages,jobTheviewsexpressedinthispaperarethoseoftheauthoranddonotreflecttheofficialpolicyorpositionoftheUnitedStatesAirForce,DepartmentofDefenseortheU.S.GovernmentMichaelJ.Hick's137
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