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

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

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 estimate their 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 CESifo Group Munich in its series CESifo Working Paper Series with number 4182.

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Date of creation: 2013
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Handle: RePEc:ces:ceswps:_4182

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Keywords: entrepreneurship; affirmative action; race; self-employment; contracting;

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References

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Cited by:
  1. 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.
  2. Aaron Chatterji & Edward Glaeser & William Kerr, 2014. "Clusters of Entrepreneurship and Innovation," Innovation Policy and the Economy, University of Chicago Press, University of Chicago Press, vol. 14(1), pages 129 - 166.

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