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The influence of residential segregation and its correlates on ethnic enterprise in urban areas

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  • Fairchild, Gregory B.

Abstract

I develop and estimate a model of potential to enter self-employment based on individual and community-level factors. Of particular interest was the influence of racial residential segregation processes, and segregation's tendency to concentrate persons with similar demographic profiles in geographic space. It has been argued that segregation processes can also concentrate poverty and its associated social dislocations. An analysis of a database of 8917 households in four U.S. metropolitan areas revealed that two residential segregation processes (clustering and interaction) limit and enhance potential entry into self-employment for blacks, and provides a partial explanation for the longstanding gaps in white and black self-employment rates.

Suggested Citation

  • Fairchild, Gregory B., 2008. "The influence of residential segregation and its correlates on ethnic enterprise in urban areas," Journal of Business Venturing, Elsevier, vol. 23(5), pages 513-527, September.
  • Handle: RePEc:eee:jbvent:v:23:y:2008:i:5:p:513-527
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    References listed on IDEAS

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    Cited by:

    1. Gregory Fairchild, 2009. "Racial segregation in the public schools and adult labor market outcomes: the case of black Americans," Small Business Economics, Springer, vol. 33(4), pages 467-484, December.

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