[Vision2020] Wal-Mart Equals Higher Poverty Rates

[Mark Solomon]

  Social Science Quarterly Publishes Study: Wal-Mart Equals Higher Poverty Rates

Study claims Wal-Mart raises poverty rates in the counties where its 
stores are located.


MALDEN, Mass./EWORLDWIRE/May 17, 2006 --- A study published in the 
latest issue of Social Science Quarterly is the first to examine the 
effect of Wal-Mart stores on poverty rates. The study found that 
nationwide an estimated 20,000 families have fallen below the 
official poverty line as a result of the chain's expansion.

During the last decade, dependence on the food stamp program 
nationwide increased by eight percent while in counties with Wal-Mart 
stores, the increase was almost twice as large at 15.3 percent.

"After controlling for other factors determining changes in the 
poverty rate over time, we find that counties with more initial 
Wal-Mart stores and with more additions of stores between 1987 and 
1998 experienced greater increases (or smaller decreases) in family 
poverty rates during the 1990's economic boom period," stated Stephan 
Goetz a professor of Agricultural and Regional Economics at The 
Pennsylvania State University. Although Wal-Mart employs many people 
living in its communities, for most, the hours worked and the wages 
paid do not help these families transition out of poverty.

Another effect is that the closing of "mom and pop" stores following 
the appearance of a store leads to the closing of local businesses 
that previously supplied those stores including, wholesalers, 
transporters, logistics providers, accountants, lawyers and others. 
Goetz states, "By displacing the local class of entrepreneurs, the 
Wal-Mart chain also destroys local leadership capacity." Social 
Science Quartely author's encourage community leaders to think about 
programs and policies in anticipation of helping those displaced by 
the arrival of the chain.

This study is published in the June issue of Social Science 
Quarterly. Media wishing to receive a PDF of this article please 
contact journalnews at bos.blackwellpublishing.net.

Connecting the Social Sciences, Social Science Quarterly is 
nationally recognized as one of the top journals in the field. It is 
published on behalf of the Southwestern Social Science Association.

Dr. Stephan J. Goetz is a professor of Agricultural and Regional 
Economics at The Pennsylvania State University. Before coming to Penn 
State in 1999, he served on the faculty at the University of Kentucky 
for nine years with research and teaching responsibilities in 
economic development. Dr. Goetz is available for questions and 
interviews.

Blackwell Publishing is the world's leading society publisher, 
partnering with 665 academic and professional societies. Blackwell 
publishes over 800 journals and, to date, has published more than 
6,000 books, across a wide range of academic, medical and 
professional subjects.

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SOURCE: Blackwell Publishing
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