Power and poverty: The distributional consequences of Walmart Supercenter openings

Labour Economics 2026 Open access

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Authors: Lukas Lehner, Zachary Parolin, Clemente Pignatti, Rafael Pintro Schmitt
DOI: 10.1016/j.labeco.2026.102927
Cited by: 0
References: 33

Abstract

We use restricted-access Panel Study of Income Dynamics data from 1970-2019 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, channeled through declining annual earnings. Increases in poverty are largest for younger and less-educated adults, and for adults with lower pre-treatment incomes. Supercenter openings lead to a $200 (16%) per household per year increase in government income transfers received, and a $920 (5%) per household per year decrease in tax revenues.

Fields of Study & Subjects

Housing Finance and Neoliberalism

Publication details

Journal / source
Labour Economics
Publisher
Elsevier BV
Volume
101
Pages
102927–102927
Publication date
30 June 2026
Language
EN