PPI - Radically Pragmatic
  • Donate
Skip to content
  • Home
  • About
    • About Us
    • Locations
    • Careers
  • People
  • Projects
  • Our Work
  • Events
  • Donate

Our Work

How Ecommerce Creates Jobs and Reduces Income Inequality

  • May 9, 2017
  • Michael Mandel

The expansion of ecommerce is a significant plus for the income and living standards of high-school educated workers, not a minus. That’s welcome news, as demonstrated in our latest paper, “How Ecommerce Creates Jobs and Reduces Income Inequality:”

We estimate that ecommerce jobs in fulfillment centers and ecommerce companies rose by 400,000 from December 2007 to June 2017, substantially exceeding the 140,000 decline of brickand- mortar retail jobs. We explain this job growth by showing that households are saving 64 million hours of week of shopping time because of ecommerce, and some of these unpaid household hours are being shifted into market work. One consequence is that productivity growth is being underestimated.

Based on a county-by-county analysis, we estimate that fulfillment center jobs pay 31% more than brick-and-mortar retail jobs in the same area. This suggests the shift to ecommerce jobs is reducing income inequality by raising the wages paid to high school graduates.

This research was cited in today ‘s Greg Ip’s Wall Street Journal piece, “Workers: Fear not the Robot Apocalypse”.  Read the paper here.

 

 

 

 

Related Work

Budget Breakdown  |  June 26, 2025

GOP’s “Big Beautiful Bill” Would Undermine Economic Stability

  • Ben Ritz Alex Kilander Nate Morris
Blog  |  June 26, 2025

“Trump Accounts” Are a Promising Start, But Flaws Remain

  • Alex Kilander
Op-Ed  |  June 18, 2025

Weinstein Jr. for Forbes: It’s The Early 1990s Bond Market Again

  • Paul Weinstein Jr.
Budget Breakdown  |  June 18, 2025

Senate Changes to House Reconciliation Bill Are a Mixed Bag

  • Ben Ritz Nate Morris
Press Release  |  June 10, 2025

New PPI Report Finds Tech and E-Commerce Sectors Are a Powerful Engine for Local Resilience

  • Michael Mandel
Publication  |  June 10, 2025

The 2025 PPI Tech/Info/Ecommerce Job Index: Fighting Recession on the Local Level

  • Michael Mandel
  • Never miss an update:

  • Subscribe to our newsletter
PPI Logo
  • Twitter
  • LinkedIn
  • Facebook
  • Donate
  • Careers
  • © 2025 Progressive Policy Institute. All Rights Reserved.
  • |
  • Privacy Policy
  • |
  • Privacy Settings