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Black-Friendly Businesses in Cities During the Civil Rights Era

Author

Listed:
  • Maggie E.C. Jones
  • Trevon D. Logan
  • David Rosé
  • Lisa D. Cook

Abstract

Quantitative analysis of Black business districts and evidence on the magnitude of social change leading up to the passage of the Civil Rights Act of 1964, in particular as it relates to the accessibility of public accommodations, is limited. We combine newly digitized data on the precise geocoded location of nearly 6,000 Green Book establishments—public accommodations that were friendly towards African American clientele—across major urban areas with existing and new sources of data on social change to understand the dynamics of Black-friendly businesses within cities during the middle of the twentieth century. In doing so, we document a new set of facts. First, we show that the location and growth of Green Book establishments responded to economic forces. Second, we show that there was a large increase in the number of Green Book establishments in cities between 1939 and 1955. Third, for Green Book establishments located in cities for which the Home Owner’s Loan Corporation (HOLC) drew residential security maps, the vast majority (nearly 70 percent) were located in the lowest-grade, redlined neighborhoods. And finally, we show that 1950s urban renewal projects were related to the contraction of non-discriminatory businesses. Collectively, these facts suggest that more research on Black-owned and Black-friendly businesses is needed to fully understand the economics of urban change in the twentieth century.

Suggested Citation

  • Maggie E.C. Jones & Trevon D. Logan & David Rosé & Lisa D. Cook, 2020. "Black-Friendly Businesses in Cities During the Civil Rights Era," NBER Working Papers 26819, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:26819
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    References listed on IDEAS

    as
    1. Logan, Trevon D. & Parman, John M., 2017. "The National Rise in Residential Segregation," The Journal of Economic History, Cambridge University Press, vol. 77(1), pages 127-170, March.
    2. Jhacova A. Williams, 2021. "Confederate Streets and Black-White Labor Market Differentials," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 27-31, May.
    3. Card, David & Rothstein, Jesse, 2007. "Racial segregation and the black-white test score gap," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2158-2184, December.
    4. Ananat, Elizabeth Oltmans & Washington, Ebonya, 2009. "Segregation and Black political efficacy," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 807-822, June.
    5. Prottoy A. Akbar & Sijie Li & Allison Shertzer & Randall P. Walsh, 2019. "Racial Segregation in Housing Markets and the Erosion of Black Wealth," NBER Working Papers 25805, National Bureau of Economic Research, Inc.
    6. Elizabeth Oltmans Ananat, 2011. "The Wrong Side(s) of the Tracks: The Causal Effects of Racial Segregation on Urban Poverty and Inequality," American Economic Journal: Applied Economics, American Economic Association, vol. 3(2), pages 34-66, April.
    7. Roback, Jennifer, 1986. "The Political Economy of Segregation: The Case of Segregated Streetcars," The Journal of Economic History, Cambridge University Press, vol. 46(4), pages 893-917, December.
    8. Boustan, Leah Platt, 2009. "Competition in the Promised Land: Black Migration and Racial Wage Convergence in the North, 1940–1970," The Journal of Economic History, Cambridge University Press, vol. 69(3), pages 755-782, September.
    9. Cook, Lisa D., 2012. "Overcoming Discrimination by Consumers during the Age of Segregation: The Example of Garrett Morgan," Business History Review, Cambridge University Press, vol. 86(2), pages 211-234, July.
    10. David M. Cutler & Edward L. Glaeser, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(3), pages 827-872.
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    More about this item

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-
    • N82 - Economic History - - Micro-Business History - - - U.S.; Canada: 1913-
    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-

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