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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. Chatterji, Aaron K & Chay, Kenneth Y & Fairlie, Robert W, 2013. "The Impact of City Contracting Set-Asides on Black Self-Employment and Employment," Santa Cruz Department of Economics, Working Paper Series qt479755b2, Department of Economics, UC Santa Cruz.
  2. Aaron Chatterji & Edward Glaeser & William Kerr, 2013. "Clusters of Entrepreneurship and Innovation," NBER Chapters, in: Innovation Policy and the Economy, Volume 14, pages 129-166 National Bureau of Economic Research, Inc.

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