Does Wal-Mart Increase Poverty Rates?

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 8
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 both 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 1990s economic boom period,' Stephan Goetz a Professor of Agricultural and Regional Economics at The Pennsylvania State University states. 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.

via Cynical-C Blog