This research finds that Wal-Mart store openings lead to the replacement of better paying jobs with jobs that pay less. Wal-Mart's entry also drives wages down for workers in competing industry segments such as grocery stores. The study found that the opening of a single Wal-Mart store in a county lowered average retail wages in that county by between 0.5 and 0.9 percent. In the general merchandise sector, wages fell by 1 percent for each new Wal-Mart. And for grocery store employees, the effect of a single new Wal-Mart was a 1.5 percent reduction in earnings. When Wal-Mart entered a county, the total wage bill declined along with the average wage. The study also found that the total amount of retail earnings in a county fell by 1.5 percent for every new Wal-Mart store. Similar effects appeared at the state level.
