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This study finds that the presence of Wal-Mart stores reduces the number of self-employed workers as a share of the total labor force in communities, on the one hand, and that it also raises the returns to self-employment endeavors, on the other. This finding is consistent with Joseph Schumpeter's prediction of creative destruction in an entrepreneurial, market-based economy.

To cite this study:
Goetz, Stephan J. (Sept. 2006), "The Place-Based Structural Determinants and Effects of Self-Employment," Report to the Ewing Marion Kauffman Foundation. The Northeast Regional Center for Rural Development, Penn State University, University Park, PA, 64 pp.

Article: Explaining Self-Employment Success and Failure: Wal-Mart vs. Starbucks

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