Degree Type
Honors Capstone Project
Date of Submission
Spring 5-1-2011
Capstone Advisor
Chris Rohlfs
Honors Reader
Jeffrey Weinstein
Capstone Major
Economics
Capstone College
Management
Audio/Visual Component
no
Capstone Prize Winner
no
Won Capstone Funding
no
Honors Categories
Social Sciences
Subject Categories
Economic History | Economics | Economic Theory | Finance | Growth and Development
Abstract
As the largest private sector employer in the United States, corporate retail giant Walmart continues to make waves in United States culture and the economy since launching its first store in 1962. As Walmart seeks to expand, the validity of its consumer guarantee to “save money, live better” has been increasingly scrutinized, given Walmart’s use of controversial business practices, most notably its employee benefit policies and anti-unionization efforts. With over 1.4 million employees in the United States, there is much talk surrounding the potential costs of Walmart’s low prices. This study analyzes selected healthcare and unionization impacts of Walmart in various Metropolitan Statistical Areas across the United States during the years 1996 - 2004. Using cross-sectional data from the U.S. Census Bureau’s Current Population Survey, I perform an econometric analysis to evaluate the effect of the introduction of a Walmart store on Medicaid, Medicare, and private health insurance coverage as well as union membership and coverage. To address the endogeneity of Walmart’s decision to enter a particular area, I estimate a fixed effects model, controlling for year and Metropolitan Statistical Area effects. My results indicate that the introduction of a Walmart may initially appear beneficial through its creation of additional jobs and offering of low-priced goods. In addition, findings show that Walmart increases the probability of Medicaid and private health insurance coverage and has a negative effect on the probability of being a member of a union.
Recommended Citation
Ziad, Leyla, "The Effects of Walmart on Healthcare and Unionization: Is America Really Saving Money and Living Better?" (2011). Honors Capstone Projects - All. 289.
https://surface.syr.edu/honors_capstone/289
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.
Included in
Economic History Commons, Economic Theory Commons, Finance Commons, Growth and Development Commons
