Wal-Mart is no job-killer, study finds
Terry J. Fitzgerald of the Minneapolis Federal Reserve Bank is the latest economist to study Wal-Mart’s effect on small towns, and his findings won’t be welcomed by the Wal-Mart bashers out there. According to an article in the bank’s Fedgazette, Fitzgerald’s research doesn’t support the widely held belief that Wal-Mart is bad for small towns. He looked at 40 counties that got Wal-Marts between 1986 and 2003 and compared them with 49 similar sized, non-Wal-Mart counties. Here’s how the article describes the findings:
For example, Wal-Mart is widely believed to destroy local firms and jobs and to have a dampening effect on wages. But fedgazette findings suggest the opposite: Firm growth, employment and total earnings were somewhat stronger in Wal-Mart counties and, in some cases, even in the retail sector. The research does suggest that retail earnings per job fell in virtually all counties studied. But they actually fell by less in Wal-Mart counties.
The study also showed little evidence that Wal-Mart was laying waste to small businesses:
Median establishment growth in Wal-Mart counties, for example, was stronger than in non-Wal-Mart counties, particularly among smaller employers.
It’s true that Wal-Mart generally chooses to locate in counties with larger populations and healthier economies, so this research doesn’t amount to an endorsement of the giant retailer as a job creator. Fitzgerald and co-author Ronald A. Wirtz conclude:
In sum, fedgazette findings suggest that Wal-Mart has a slightly positive effect on counties where the retailer decides to set up shop. But the effects are small; one could call the results mostly a wash



David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page.
With all due respect,the study compares apple and oranges, Mr. Nicklaus. Critics charge, rightly, that Wal-Mart destroys the economies of smaller towns. The pro-Wal-Mart study examines not the towns involved, but the counties.
When we moved to Pacific in 1993, Wal-Mart was the main general merchandise store in town (There was one Dollar General). Wal-Mart left circa 1996, and no incentive, TIF proposal, or any other perk could get another similar general merchandise store in town in the 12 years since. Now, we’re in Franklin County. One could cite the staggering growth of retail in the town of Washington 12 miles away(they just got a Hyper-Wal-Mart, Kohls, big Penneys, super Schnucks and heaven knows what else in the same time period) as being “great growth in the county”. Sullivan, 30 miles away, has exploded, too. But it doesn’t do us any good, except lessen our chances to get anything bigger than another Dollar General. I, quite proudly, managed to do all my Christmas shopping neither in Washington,nor Sullivan and without darkening the door at Wal-Mart.
In this case, a rising tide does not lift all ships.