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

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Author Info

  • Chatterji, Aaron K.

    ()
    (Duke University)

  • Chay, Kenneth Y.

    ()
    (Brown University)

  • Fairlie, Robert W.

    ()
    (University of California, Santa Cruz)

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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7298.

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Length: 61 pages
Date of creation: Mar 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7298

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Keywords: contracting; African-American; black; race; self-employment; entrepreneurship; affirmative action;

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References

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  1. Chatterji, Aaron K. & Chay, Kenneth Y. & Fairlie, Robert W., 2013. "The Impact of City Contracting Set-Asides on Black Self-Employment and Employment," IZA Discussion Papers 7298, Institute for the Study of Labor (IZA).
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  23. Timothy Bates, 1985. "Impact of preferential procurement policies on minority-owned businesses," The Review of Black Political Economy, Springer, vol. 14(1), pages 51-65, June.
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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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