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New Rules Project -Retail -The Hometown Advantage -Big Box and Wal-Mart Econom... Page 3 of 11 local owner; and taxes paid to local and state govemmenL Using a variety of sources, the analysis esamales that a natlonal big box retailer operetlng kt Midwest Maine relums jud 74.1 percent of ks revenue to the local economy, mostty in the form of payroll. The real haves the state, flowing moot-of-elate suppliers or bade to wrporete headquarters. Tha survey also found that the lord businesses wntribt7led more to charity Nan natlonal chains. Economic Impact Analysis: A Case Study - Dy Civic Ewnomics, December 2D02. This sWdy examines Ore local economic impel of two locally owned businesses In Austin, Texas- Walerloo Records and Bock People-and cemparea Nis with dre ewnomic relum the wmmunity would receive from a Borders ewks store. The study finds that spending 5700 et Borders credos S13 worN oT local ewnomle actlvfty, whoa spending 5100 at the local stores generates 545 in heal ewnomic adivity. The tllRerence b atlributetl to three fedora: a higher heel payroN d the trrtlependeM stores (because, unlike Borders, none of Nelr operatbns are carried out a an oul-of-lows headquartea o1NCe): the local stores purchased more goods and services kreaNy; and the krcal stores mtained a much larger share of thetr profits wflhM the heal ewnomy. 2 RETAIL EMPLOYMENT These studies examine wheNer the amNal of a superstore increases or decreases Ne number of retail Jobs N Ne region. The ETfecb of Wal-Mart on Local Labor Markets - - by David Newmark (University of Calitomia-Irvine), Jun1u Zhang (Clark Unversity), end Stephen Clwarella (Comdl lhtlversily), IZA Diswssion Paper No. 2545, Jan. 2007 This aWdy precenb Ne most sopMstinted anaysis to sate of WaFMarth impel on refaN empbymeM and wages. Anatyzkrg natlwtal dam, the study found Net Ne opening of a Wet-Mart store reduces wuntyaevel refeY empbymwtt by 750 jobs. Beeattae WsFMart afores empbY sn average of 380 workers, thb suggeaffi That for every new etaN Job created by Wal-Marl, 1.4 Jobs are lost as exlstlrtg businesses dowrtsize M dose. The study also found Nat the artival of a Wal-Mart slow redoes told wrxdy-wMe retaN payroN by an average of about 57.2 mplbn. Thb study trrrproves wbahntialy on previous studies by convtrkkigty acwtrntkrg for Ne endogenelly of the loeatlon and tlming of Wal-MarCs entry imo a partlcular local market That k, Wal-Msrt presumably tloea not locate stores rendomty. When exparMktg imo e partlwlar region. A may. fa example, opt to btrNd in towrro etgferbndng groaterJob growth. Unbss thM bcatlon sekctlon bias is awourtted for. one might wmpare job growth kt towns Nd gained Wal-Mart stores verses Nose that did rest and erroneously wndude Nd Wal-Mart cawed an experubn in empbyment The auNOrs of tlds strrdy have devised a persuasive meNod of aocountlng for thb hies. They also argue that the method devebped by Backer (sea neM Item Uelow) to aowtatl for Nis bias is flawed and therefore her wndusion Net WaMtart has a smap postlNe impel on etaN empi0ymera is nd reliable. Job Creation or DesWOdon7 Labor-Market Effects of Wal- Mart Expanabn - ey Enrdt Backer, UNverstly or Miasad, Review of Economies b S/atls8a, February 2006 ORen ailed and typlceNy mfarepresenbd by WaF http://wwnv.newrules.org/retaiUeconimpact.html ~ 9/5/2007