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Business Dynamics on American Indian Reservations: Evidence from Longitudinal Datasets

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  • Randall Akee
  • Elton Mykerezi
  • Richard Todd

Abstract

We use confidential US Census Bureau data to analyze the difference in business establishment dynamics by geographic location on or off of American Indian reservations over the period of the Great Recession, and subsequent recovery (2007-2016). We geocoded U.S. Census Bureau’s Longitudinal Business Database, a dataset with records of all employer business establishments in the U.S. for location in an American Indian Reservation and used it to examine whether there are differences in business establishment survival rates over time by virtue of their location. We find that business establishments located on American Indian reservations have higher survival rates than establishments located in comparable counties. These results are particularly strong for the education, arts and entertainment, wholesale and retail, and public administration industries. While we are not fully able to explain this result, it is consistent with the business establishments being positively selected with respect to survival given the large obstacles necessary to start a business on a reservation in the first place. Alternatively, there may be certain safeguards in a reservation economy that protect business establishments from external economic shocks.

Suggested Citation

  • Randall Akee & Elton Mykerezi & Richard Todd, 2020. "Business Dynamics on American Indian Reservations: Evidence from Longitudinal Datasets," Working Papers 20-38, Center for Economic Studies, U.S. Census Bureau.
    • Handle: RePEc:cen:wpaper:20-38
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    File URL: https://www2.census.gov/ces/wp/2020/CES-WP-20-38.pdf
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    References listed on IDEAS

    as
    1. Akee, Randall & Jorgensen, Miriam, 2014. "Property institutions and business investment on American Indian reservations," Regional Science and Urban Economics, Elsevier, vol. 46(C), pages 116-125.
    2. Robert W. Fairlie & Bruce D. Meyer, 1996. "Ethnic and Racial Self-Employment Differences and Possible Explanations," Journal of Human Resources, University of Wisconsin Press, vol. 31(4), pages 757-793.
    3. Randall Akee, 2009. "Checkerboards and Coase: The Effect of Property Institutions on Efficiency in Housing Markets," Journal of Law and Economics, University of Chicago Press, vol. 52(2), pages 395-410, May.
    4. Cornell, Stephen & Kalt, Joseph P, 1995. "Where Does Economic Development Really Come From? Constitutional Rule among the Contemporary Sioux and Apache," Economic Inquiry, Western Economic Association International, vol. 33(3), pages 402-426, July.
    5. Carlson, Leonard A., 1981. "Land allotment and the decline of American Indian farming," Explorations in Economic History, Elsevier, vol. 18(2), pages 128-154, April.
    6. Randall Akee & Elton Mykerezi & Richard M. Todd, 2017. "Reservation Employer Establishments: Data from the U.S. Census Longitudinal Business Database," Working Papers 17-57, Center for Economic Studies, U.S. Census Bureau.
    7. Cornell, Stephen & Kalt, Joseph P., 2000. "Where's the glue? Institutional and cultural foundations of American Indian economic development," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 29(5), pages 443-470.
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    Keywords

    Entrepreneurship; Great Recession; American Indians; Employment; Business Deaths;
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