Chicago’s “Maxwell Street Market”

The 120-year-old street vendor haven…

     In this article, we will look at research into the effect of shutting down the original Maxwell Street market in the early 1990’s. In the future, we will get into some of the history of Maxwell Street and other stories of interest.

     Fortunately, researchers were able conduct a few studies on several aspects of the famous year-round Chicago Maxwell Street Market where hundreds of street vendors sold every Sunday for about 120 years. Sadly, most of the research was done in the last few years of the existence of Maxwell Street before it was shut down.

     In a report titled “Utilizing the informal economy: the Case of Chicago’s Maxwell Street market”, the researchers of Balkin, Morales, and Presky attempt to show not only the financial loss to Chicago, but the intrinsic educational opportunity losses to the lower income families and immigrants in the neighborhoods.

     Financially, they first analyze the street vendor participation based on the markets capacity during the four seasons of operations. For example, they take into account that market is smaller during the cold Chicago windy winter months (40% capacity during January and February.) Secondly, they divide the vendors into four types to help calculate the street vendors’ weekly average sales. Marginal goods (20% earning $75 average). Specialty goods (40% with a$175 average sales). Low-margin new goods (30% averaging $350 a week). Lastly, high-margin new goods (10% of all vendors earning an average $800).

     The direct financial loss of closing Maxwell Street was anticipated to be minimally about $10 million (in 1994 dollars).

      They were able to demonstrate that shoppers consisted of both international tourists and interstate customers. They pointed out the “diverse cultural cooperation” of the multiethnic market population on a weekly bases was an immeasurable addition to the Chicago community.

      They were unable to calculate the financial loss to micro-entrepreneurs, wholesalers, and incubator businesses, the vendor’s personal investments in their own neighborhoods, and the cost of private school for the children. They were also unable to quantify the loss of education in money and lifelong business skills the next generation, e.g. bargaining skills, language translating, responsibility, and good work habits.

Reference

Balkin, S., Morales, A., Persky, J. (1994). Utilizing the informal economy: the case of Chicago's Maxwell Street market, (Working paper number 23). Tucson, Az., Mexican American studies and Research Center.