Is walmart the same as ten years ago? A non-parametric difference-in-differences analysis of walmart development

Abstract

Walmart experienced tremendous growth and changes from 1962 when the first store opened. This study examines the temporal variation in Walmart's effects on neighboring house prices and local labor markets employing a new non-parametric difference-in-differences method to address concerns that areas immediately around a Walmart and comparison areas nearby may have different trends prior to a store opening. The results show that the prices of homes located within 0.5 miles of Walmart increased at a maximum rate of 2.97% due to store openings from 1990 to 2000. Conversely, store openings in 2002–2007 resulted in approximately zero effects on neighboring house prices, and stores that opened in 2008–2013 experienced house price declines of roughly 3% within 0.5 miles of the store. Explorations of the underlying mechanisms suggest that Walmart openings had led to deteriorating shopping convenience but increasing negative spillovers from the early to the late 2000s. Government subsidies and zoning policies targeting these issues might help mitigate the negative spillovers from Walmart.