Influence of Residential Internet Access and Patented Innovation on U.S. Non-store Retail Industries’ Employment
DOI:
https://doi.org/10.14738/assrj.108.15275Keywords:
Retail industry, employment agglomeration, Internet access, patented innovationAbstract
This paper studies employment trends of the U.S. nonstore retail industries at multi-jurisdictional levels (States, Census Regions, Census Division, and the nation) for years 2001 through 2021. The nonstore retail industry is a growing subsector of the overall retail industry. With no or skeletal ‘brick- and-mortar presence’, nonstore retailers are poised for leveraging information and communication technologies and innovations from the inception of their business operations. With the need for scaling up in the backdrop of limited or zero ‘on-site’ customer-interactions, the nonstore retailers are inclined to find novel ways to interact and transact with existing and prospective customers. As more and more brick-and-mortar stores begin to offer electronic shopping opportunities from their web-based stores, traditional nonstore retailers face steeper competition. Utilizing panel data regressions this paper explores marginal impacts of residential internet access, patented innovations, and other fiscal and macroeconomic variables on nonstore retail industry (NAICS Code 454). The regression results suggest that residential internet access is a positive influence on both nonstore retail employment and number of nonstore retail entities. The results also suggest that utility patents and design patents are positive factors for growth of nonstore retail industry’s employment and business entities.
References
Audretsch, D. B., & Feldman, M. P. (1996). R&D spillovers and the geography of innovation and production. The American economic review, 86(3), 630-640.
Belman, D., & Wolfson, P. (1999). Its bark is worse than its bite: The wage and employment effects of the minimum wage in the US. Australian Economic Papers, 38(2), 143-163.
Brown, C., Gilroy, C. & Kohen, A. (1992). The Effect of the Minimum Wage on Employment and Unemployment, Journal of Economic Literature, 20, 487-528.
Burkhauser, R. V., Couch, K. A., & Wittenburg, D. C. (2000). Who minimum wage increases bite: An analysis using monthly data from the SIPP and the CPS. Southern Economic Journal, 67(1), 16-40.
Card, D., & Krueger, A. B. (1994). Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania. The American Economic Review, 84(4), 772-793.
Card, D. (1992). Do Minimum Wages Reduce Employment? A Case Study of California, 1987- 1989. Industrial and Labor Relations Review. Vol. 46, No. 1, pp. 38-54. Khan, A. (2023). Influence of Residential Internet Access and Patented Innovation on U.S. Non-store Retail Industries’ Employment. Advances in
Chava, S., Oettl, A., Singh, M., & Zeng, L. (May 2022). Creative Destruction? Impact of E-Commerce on the Retail Sector. NBER Working paper No. w30077, Available at SSRN: https://ssrn.com/abstract=4122806 or http://dx.doi.org/10.2139/ssrn.4122806
Calvino, F., & Virgillito, M. E. (2018). The innovation‐employment nexus: a critical survey of theory and empirics. Journal of Economic surveys, 32(1), 83-117.
Cameron, A. C., & Trivedi, P. K. (2005). Microeconometrics: methods and applications. Cambridge University Press.
Cohn, J. B., Liu, Z., & Wardlaw, M. I. (2022). Count (and count-like) data in finance. Journal of Financial Economics, 146(2), 529-551.
Correia, S., Guimarães, P., & Zylkin, T. (2020). Fast Poisson estimation with high-dimensional fixed effects. The Stata Journal, 20(1), 95-115.
Falk, M., & Hagsten, E. (2018). Employment impacts of market novelty sales: evidence for nine European countries. Eurasian Business Review, 8, 119-137.
Federal Reserve Bank of St. Louis. Federal Reserve Economic Data (FRED). https://fred.stlouisfed.org/
Gale, W. G., Krupkin, A., & Rueben, K. (2015). The relationship between taxes and growth at the state level: new evidence. National Tax Journal, 68(4), 919-941.
Greenhalgh, C., Longland, M., & Bosworth, D. (2001). Technological activity and employment in a panel of UK firms. Scottish Journal of Political Economy, 48(3), 260-282.
Hänninen, M., Kwan, S. K., & Mitronen, L. (2021). From the store to omnichannel retail: looking back over three decades of research. The International Review of Retail, Distribution and Consumer Research, 31(1), 1-35.
Helm, S., Kim, S. H., & Van Riper, S. (2020). Navigating the ‘retail apocalypse’: A framework of consumer evaluations of the new retail landscape. Journal of Retailing and Consumer Services, 54, 101683.
Hirsch, B. T., Kaufman, B.E., & Zelenska, T. (2015). Minimum Wage Channels of Adjustment. Industrial Relations 52: 199-239.
Katz, Lawrence F., and Alan B. Krueger. (1992). The Effect of the Minimum Wage on the Fast-Food Industry. Industrial and Labor Relations Review, Vol. 46, No. 1 (October), pp. 6-21.
Krugman, P. (1992). Geography and trade. MIT press.
Ljungqvist, A., & Smolyansky, M. (2014). To cut or not to cut? On the impact of corporate taxes on employment and income (No. w20753). National Bureau of Economic Research.
Mansournia, M. A., Nazemipour, M., Naimi, A. I., Collins, G. S., & Campbell, M. J. (2021). Reflection on modern methods: demystifying robust standard errors for epidemiologists. International Journal of Epidemiology, 50(1), 346-351.
Meer, J., & West, J. (2016). Effects of the minimum wage on employment dynamics. Journal of Human Resources, 51(2), 500-522.
Neumark, D., & Shirley, P. (2022). Myth or measurement: What does the new minimum wage research say about minimum wages and job loss in the United States? Industrial Relations: A Journal of Economy and Society, 61(4), 384-417. 123
Palmer, A., Losilla, J. M., Vives, J., & Jiménez, R. (2007). Overdispersion in the Poisson regression model. Methodology, 3(3), 89-99.
Research and Markets. (2022, February 23). Global Market for eCommerce & Other Non-Store Retailers, 2022-2026 - Pandemic bolsters e-Commerce as a preferred retail channel. GlobeNewswire Newsroom. https://www.globenewswire.com/en/news-release/2022/02/23/2390072/28124/en/Global-Marketfor-eCommerce-Other-Non-Store-Retailers-2022-2026-Pandemic-Bolsters-e-Commerce-as-a-Preferred-Retail-Channel.html
Rickman, D., & Wang, H. (2020). US state and local fiscal policy and economic activity: Do we know more now? Journal of Economic Surveys, 34(2), 424-465.
Rosenthal, S. S., & Strange, W. C. (2001). The determinants of agglomeration. Journal of urban economics, 50(2), 191-229.
Rothwell, J., Lobo, J., Strumsky, D., & Muro, M. (2013). Patenting Prosperity. Brookings Institution.
Townsend, M., Surane, J., Orr, E., & Cannon, C. (2017). America's" retail apocalypse" is really just beginning. Bloomberg, 8, 1-11.
U.S. Bureau of Labor Statistics (2023, July 7). Employment Situation Summary. Economic News Release. https://www.bls.gov/charts/employment-situation/employment-levels-by-industry.htm
USPTO (2022, March 17). Intellectual Property and the U.S. Economy (3rd edition). https://www.uspto.gov/about-us/news-updates/latest-uspto-report-finds-industries-intensively-useintellectual-property-0
Van Roy, V., Vértesy, D., & Vivarelli, M. (2018). Technology and employment: Mass unemployment or job creation? Empirical evidence from European patenting firms. Research policy, 47(9), 1762-1776.
Wang, W., Phillips, P. C., & Su, L. (2019). The heterogeneous effects of the minimum wage on employment across states. Economics Letters, 174, 179-185.
Wooldridge, J.M. (2002), “Econometric Analysis of Cross Section and Panel Data,” Cambridge: MIT Press.
Yang, C. H. & C. H. Huang (2005). R&D, size, and firm growth in Taiwan’s electronics industry. Small Business Economics 25 (5), 477–487.
Yasuda, T. (2005). Firm growth, size, age, and behavior in Japanese manufacturing. Small Business Economics 24 (1), 1–15.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Abdullah Khan
This work is licensed under a Creative Commons Attribution 4.0 International License.
