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Small Business Growth and Failure during the Great Recession: The Role of House Prices, Race & Gender

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Listed:
  • Ron Jarmin
  • CJ Krizan
  • Adela Luque

Abstract

Using 2002-2011 data from the Longitudinal Business Database linked to the 2002 and 2007 Survey of Business Owners, this paper explores whether (through a collateral channel) the rise in home prices over the early 2000’s and their subsequent fall associated with the Great Recession had differential impacts on business performance across owner race, ethnicity and gender. We find that the employment growth rate of minority-owned firms, particularly black and Hispanic-owned firms, is more sensitive to changes in house prices than is that of their nonminority-owned counterparts.

Suggested Citation

  • Ron Jarmin & CJ Krizan & Adela Luque, 2016. "Small Business Growth and Failure during the Great Recession: The Role of House Prices, Race & Gender," CARRA Working Papers 2016-08, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:cpaper:2016-08
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    File URL: https://www.census.gov/content/dam/Census/library/working-papers/2016/adrm/carra-wp-2016-08.pdf
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    References listed on IDEAS

    as
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    7. Adelino, Manuel & Schoar, Antoinette & Severino, Felipe, 2015. "House prices, collateral, and self-employment," Journal of Financial Economics, Elsevier, vol. 117(2), pages 288-306.
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    Cited by:

    1. Adela Luque & Maggie R. Jones, 2019. "Gender Differences in Self-employment Duration: the Case of Opportunity and Necessity Entrepreneurs," Working Papers 19-24, Center for Economic Studies, U.S. Census Bureau.

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