The online environment’s adverse effect on the sustainability of the retail workforce

Abstract

ABSTRACT The retail environment has undergone seismic changes over the past couple of decades with respect to the predominant venue in which consumers can procure their personal, family, and household goods. This transformation of the retailing landscape means that consumers can engage in “retail” activity via a variety of mediums, including exclusively online. These changes have residual effects on employment dynamics for the individuals who work in this arena. In particular, the retailing operational changes that result in significant shifts to the online arena beg the question of what becomes of the individuals who were formerly employed on the ground. Using Census data, we analyze employment trends among retail workers, disaggregated by race and gender. Our analysis indicates that the digitalization of the retail economy has so far contributed to a continuation of the wage stagnation and job loss for women (especially women of color) that has been a historical part of the undercurrent of the American workplace landscape. We employ the theory of compensating differentials to provide an explanation for these disparities, while also analyzing the validity of previous application of the theory.