1. WalMart and Wages Steven S. Cuellar Department of Economics Sonoma State University 1801 East Cotati Ave. Rohnert Park CA 94928

2. The Diffusion of Wal Mart

3. The First Wal Mart opened in Rogers, Arkansas in 1962

4. By 2005 there were 3,243 stores in the U.S. The First Wal Mart opened in Rogers, Arkansas in 1962

5. How Can Wal Mart Reduce Wages?

6. Competitive Model of the Labor Market S=MC D Wage/Hour Firm Labor Labor Market S D WCWC lClC LCLC

7. Monopsony Model of the Labor Market Wage/Hour Labor Monopsonist S D WMWM MC LDLD WCWC LCLC

8. Overview of Wages

9. U.S. Wage Inequality

10. U.S. College-High School Wage Differential

11. California

12. Sonoma County

13. WalMart opened in Rohnert Park in 1992 WalMart opened in Windsor in 1999

14. Sonoma County Wages

16. Napa / Fairfield /Vallejo WalMart opened in Vallejo in 1991 WalMart opened in Fairfield in 1993 WalMart opened in Napa in 2001

17. Napa / Fairfield /Vallejo Wages

19. Combined Data Set of Indexed Wages

20. Regression Fitted to the Combined Data Set

21. Preliminary Regression Results Estimated CoefficientsWages Constant135.097 (12.11)** time-12.95 (2.00)* time20.769 -0.92 Wal Mart Dummy-51.557 (3.19)** Wal Mart Interaction15.626 (2.34)* Wal Mart Interaction2-0.851 -1.02 Observations391 R-squared0.11 Absolute value of t-statistics in parentheses * significant at 5% level; ** significant at 1% level

22. Chow Test For Structural Change Chow Test F-Statistic = 13.597634 Critical F-Statistic = 2.628088 Wage i = β 0 + β 1 Time i + β 2 Time 2 i + β 3 WalMart + β 4 WalMart*Time + β 5 WalMart*Time 2 +u i H 0 : β 3 = β 4 = β 5 =0 H 1 : At least one does not equal zero