The aim of this paper is to analyse labour turnover in retail firms with stores in different city locations. This case study of a Swedish mid-sized city uses comprehensive longitudinal register data on individuals. In a first step, an unconditional descriptive analysis shows that labour turnover in retail is higher in out-of-town locations, compared to more central locations in the city. In a second step, a generalized linear model (GLM) analysis is conducted where labour turnover in downtown and out-of-town locations are compared. Firm internal and industry factors, as well as employee characteristics, and location-specific factors are controlled for. The results indicate that commuting costs and intra-urban location have no statistically significant effect on labour turnover in retail firms. Instead, firm internal factors, such as human resource management, has a major influence on labour turnover rates. The findings indicate that in particular firms with multiple locations may need to pay extra attention to work conditions across stores in different places in a city, in order to avoid diverging levels of labour mobility. This paper complements previous survey-based studies on labour turnover by using a comprehensive micro-level dataset to analyse revealed rather than stated preferences concerning job-to-job mobility. An elaborated measure of labour turnover is used to analyse differences between shopping areas in different locations within the city. The particular research design used in this paper makes it possible to isolate the effect of intra-organizational conditions by analysing mobility within firms with workplaces in both downtown and out-of-town locations. This is the first comprehensive study of labour turnover and mobility with an intra-urban perspective in the retail sector.
In order for town centres to manage increased competition in retailing, cooperation between stakeholders in a strategic alliance has become more important. Typical stakeholders in such a strategic alliance are retailers, local authorities, and property owners. The importance of retailers and local authorities is well researched. However, the property owners’ importance is not. The aim of this article is to uncover the perceived importance of property owners in a strategic alliance. This is a case study of a medium-sized town in which semi-structured interviews with different stakeholders were conducted. In the chosen town there is a town centre management alliance at work. The case studied shows a fragmented property owner market with no dominant property owner. Our study shows that the perception of the role of the property owner is crucial for town centre development. However, many property owners do not recognise their own significance for the town centre development. The main reasons for this opinion are that they do not consider themselves to have enough resources or the capability to influence the town development.
This paper empirically measures the potential spillover effects of big-box retail entry on the productivity of incumbent retailers in the entry regions, and investigates whether the effects differ depending on the size of the new establishment relative to the size of the local market. The results indicate that big-box entry increases the productivity of incumbent firms in two of three rural entry regions where the IKEA is large relative to the local retail market, while no productivity spillover effects could be found in the case of the urban IKEA entry in Gothenburg.
This paper analyzes the determinants of firm migration in the Swedish wholesale trade sector using a unique dataset covering over 10,000 Swedish wholesale trade firms during the years 2000 to 2004. The results indicate that there are negative correlations between profits, firm age, and firm size and the probability of firm migration. There is a positive correlation between firm growth in the previous year and firm migration, indicating that growth opportunities that cannot be realized at the present location are an important motivation for migration.
Applying microeconomic theory, we develop a forecasting model for firm entry into local markets and test this model using data from the Swedish wholesale industry. The empirical analysis is based on directly estimating the profit function of wholesale firms. Profits are assumed to depend on firm- and location-specific factors, and the profit equation is estimated using panel data econometric techniques. Using the residuals from the profit equation estimations, we identify local markets in Sweden where firm profits are abnormally high given the level of all independent variables included in the profit function. From microeconomic theory, we then know that these local markets should have higher net entry than other markets, all else being equal, and we investigate this in a second step, also using a panel data econometric model. The results of estimating the net-entry equation indicate that 19 out of 30 estimated models have more net entry in high-return municipalities, but the estimated parameter is only statistically significant at conventional levels in one of our estimated models, and then with an unexpected negative sign.
A substantial literature indicates that competition on price comparison websites is fierce, leading to lower prices for products sold. As such, we want to answer the key research question: Why do firms compete on price comparison websites? Based on theory, we suggest that participation in these marketplaces leads to increased productivity, i.e., output increases when holding constant the level of inputs used. This, in turn, leads to increased profits, motivating firms to enter price comparison websites despite fierce competition. To find out if theory holds, we empirically investigate how firm entry into a price comparison website affects firm productivity, profits, and wages. Empirically investigating the impact of PriceSpy market participation on productivity, profits, and wages is not easy since firms are free to select whether and when to enter or exit the PriceSpy marketplace, and we use a two-step procedure to address this problem. In the first step, we control for differences in observables between entering firms and potential control-group firms. Then, in a second step, we use a within-firm difference-in-difference estimator on the matched data to investigate how entry into the PriceSpy marketplace affects output while holding inputs constant. Our results indicate that for the full sample of firms, PriceSpy participation increases output by almost 12% when holding the level of inputs constant. Also, an investigation of who gains from the increased productivity shows that, for entering firms, operating profits increase by 9% and gross wages by 14% when studying the full sample of firms. That labor gains more from PriceSpy participation is even clearer when studying the impact on wholesale and retail firms separately. For those firms, wages increased by 16–17% after entry, while no statistically significant impact was found regarding operating profits.
This study investigates the importance of local service provision for the survival of rural areas. EU Rural Development Policy includes support to village shops as a means to sustain population. Shop closing is assumed to negatively affect migration to and from the area served. We analyse quantitative data on all Swedish village shops and the migration patterns in their market areas before and after shop closure. No significant effect of shop closure on either in- or out-migration can be established, regardless of whether larger or smaller market areas are employed or whether migrants with more urban shopping habits (i.e. commuters and families with children) are excluded. Complementary interviews in three villages where the last shop has closed verify the results.
In February 1912, the Slaughterhouse Reform was introduced by the city of Stockholm to address the unsanitary conditions prevalent in the production and sale of meat, and thereby improve food safety. However, opponents argued that the reform would lead to price increases, and that poorer households would therefore replace meat with cheaper products. We find that meat prices increased by 21% due to the introduction of the reform, which meant that consumers had to pay a substantial cost for improved food safety within the boundaries of Stockholm.