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The Impact of City Contracting Set-Asides on Black Self-Employment and Employment

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  • Chatterji, Aaron K
  • Chay, Kenneth Y
  • Fairlie, Robert W

Abstract

In the 1980s, many U.S. cities initiated programs reserving a proportion of government contracts for minority-owned businesses. The staggered introduction of these set-aside programs is used to estimatetheir impacts on the self-employment and employment rates of African-American men. Black business ownership rates increased significantly after program initiation, with the black-white gap falling three percentage points. The evidence that the racial gap in employment also fell is less clear as it is depends on assumptions about the continuation of pre-existing trends. The black gains were concentrated in industries heavily affected by set-asides and mostly benefited the better educated.

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Bibliographic Info

Paper provided by Department of Economics, UC Santa Cruz in its series Santa Cruz Department of Economics, Working Paper Series with number qt479755b2.

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Date of creation: 01 Feb 2013
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Handle: RePEc:cdl:ucscec:qt479755b2

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Keywords: Business; Arts and Humanities; entrepreneurship; affirmative action; self-employment; minorities;

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Cited by:
  1. Aaron Chatterji & Edward L. Glaeser & William R. Kerr, 2013. "Clusters of Entrepreneurship and Innovation," NBER Working Papers 19013, National Bureau of Economic Research, Inc.
  2. Aaron K. Chatterji & Kenneth Y. Chay & Robert W. Fairlie, 2013. "The Impact of City Contracting Set-Asides on Black Self-Employment and Employment," CESifo Working Paper Series 4182, CESifo Group Munich.

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