The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment
AbstractEstimates from the Panel Study of Income Dynamics (PSID) indicate that African-American men are one-third as likely to be self-employed as white men.Â The large discrepancy is due to a black transition rate into self-employment that is approximately one half the white rate and a black transition rate out of self-employment that is twice the white rate.Â Using a new variation of the Blinder-Oaxaca decomposition technique, I find that racial differences in asset levels and probabilities of having self-employed fathers explain a large part of the black/white gap in the entry rate, but almost none of the gap in the exit rate.
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Bibliographic InfoPaper provided by Department of Economics, UC Santa Cruz in its series Santa Cruz Department of Economics, Working Paper Series with number qt49c4n0fg.
Date of creation: 01 Jan 2014
Date of revision:
Business; Social and Behavioral Sciences; entrepreneurship; inequality; race; minorities; business ownership; labor;
Other versions of this item:
- Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
- NEP-ALL-2014-02-08 (All new papers)
- NEP-ENT-2014-02-08 (Entrepreneurship)
- NEP-LAB-2014-02-08 (Labour Economics)
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