This paper examines the effect of entry of large foreign retailers on local employment at the city level. Using a panel data for the period 2000-2006, we find that entry of large retailers largely increases employment in wholesale and retail sector and other related sector in the year of entry. The positive effect on employment in wholesale and retail sector, however, reverses in the following years, indicating small retailers exit or contract after the entry. Further evidence from other dataset at the community level supports this explanation.
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