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Recent Trends in Ethnic and Racial Business Ownership

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  • Robert W. Fairlie

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Abstract

Using Current Population Survey (CPS) microdata, I examine trends and the causes of the trends from 1979 to 1998 in business ownership among several ethnic/racial groups in the United States. I find rapid growth rates for the number of self-employed blacks, Hispanics, Asians and Native Americans relative to whites over the past decade or two. I find that the rapid growth rates were primarily due to expansions in the labor force for these groups. With the exception of female rates in the 1980s, trends in business ownership rates were fairly flat over the past two decades. There were, however, important differences across groups in changes in self-employment rates over the past decade or two. I use a dynamic decomposition technique to explore the causes of these differential trends and find some interesting patterns. For example, I find that increasing levels of education and relative declines in the age distribution of the workforce for some minority groups contributed to increasing racial gaps in self-employment.

Suggested Citation

  • Robert W. Fairlie, 2004. "Recent Trends in Ethnic and Racial Business Ownership," Small Business Economics, Springer, vol. 23(3), pages 203-218, October.
  • Handle: RePEc:kap:sbusec:v:23:y:2004:i:3:p:203-218
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    References listed on IDEAS

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    Cited by:

    1. Ken Clark & Stephen Drinkwater, 2010. "Patterns of ethnic self-employment in time and space: evidence from British Census microdata," Small Business Economics, Springer, vol. 34(3), pages 323-338, April.
    2. 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.
    3. Nadia Simoes & Nuno Crespo & Sandrina B. Moreira, 2016. "Individual Determinants Of Self-Employment Entry: What Do We Really Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 30(4), pages 783-806, September.
    4. Francesca Castellani & Eduardo Lora, 2014. "Is Entrepreneurship a Channel of Social Mobility in Latin America?," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 51(2), pages 179-194, November.
    5. Unal, Umut, 2014. "Trends in Self-Employment among Different Race Groups in the United States of America," MPRA Paper 81435, University Library of Munich, Germany.
    6. Ruth Oyelere & Willie Belton, 2013. "Black–White gap in self-employment. Does intra-race heterogeneity exist?," Small Business Economics, Springer, vol. 41(1), pages 25-39, June.
    7. Swee Hoon Chuah & Robert Hoffmann & Bala Ramasamy & Jonathan H. W. Tan, 2016. "Is there a Spirit of Overseas Chinese Capitalism?," Small Business Economics, Springer, vol. 47(4), pages 1095-1118, December.
    8. repec:kap:sbusec:v:48:y:2017:i:3:d:10.1007_s11187-016-9796-8 is not listed on IDEAS
    9. P. Köllinger & M. Minniti, 2006. "Not for Lack of Trying: American Entrepreneurship in Black and White," Small Business Economics, Springer, vol. 27(1), pages 59-79, August.
    10. Parker, Simon C., 2008. "Entrepreneurship among married couples in the United States: A simultaneous probit approach," Labour Economics, Elsevier, vol. 15(3), pages 459-481, June.
    11. Rogoff Edward, 2012. "Entrepreneurship Databases: Illuminating Processes, Describing Phenomena and Steering Research," Entrepreneurship Research Journal, De Gruyter, vol. 2(4), pages 1-32, October.
    12. Harris, Jared D. & Sapienza, Harry J. & Bowie, Norman E., 2009. "Ethics and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 24(5), pages 407-418, September.
    13. Mohamed Arouri & Adel Ben-Youssef & Cuong Nguyen, 2016. "Ethnic and racial disparities in children's education Comparative evidence from Ethiopia, India, Peru, and Viet Nam," WIDER Working Paper Series 087, World Institute for Development Economic Research (UNU-WIDER).
    14. Geyer, M. & Coetzee, H.C. & Plessis, D. du & Donaldson, R., 2011. "Recent business transformation in intermediate-sized cities in South-Africa," Serie Research Memoranda 0005, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    15. 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.
    16. Philipp Koellinger & Maria Minniti & Christian Schade, 2008. "Seeing the World with Different Eyes," Tinbergen Institute Discussion Papers 08-035/3, Tinbergen Institute, revised 11 Mar 2011.
    17. Bogan, Vicki & Darity Jr., William, 2008. "Culture and entrepreneurship? African American and immigrant self-employment in the United States," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 1999-2019, October.

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