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The Declining Status of Minorities in the New York City Construction Industry

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  • Timothy Bates

    (Wayne State University)

  • David Howell

    (New School for Social Research)

Abstract

Does the employment status of minorities suffer when government downplays affirmative action efforts? This study analyzes the relative status of minority businesses and construction employees in New York City's construction industry. Ed Koch, New York City mayor from 1978 to 1990, chose to downplay the active affirmative action efforts of his predecessors. We find that Black employees lost ground relative to Whites, particularly in the construction-skilled trades. Furthermore, minority-owned small businesses in construction are shown to be smaller, more failure-prone, and less viable overall, relative to White firms generally and woman-owned businesses specifically. Absent affirmative pressure from government, minorities are unlikely to make progress or even hold their own in the New York City area construction industry.

Suggested Citation

  • Timothy Bates & David Howell, 1998. "The Declining Status of Minorities in the New York City Construction Industry," Economic Development Quarterly, , vol. 12(1), pages 88-100, February.
    • Handle: RePEc:sae:ecdequ:v:12:y:1998:i:1:p:88-100
    DOI: 10.1177/089124249801200107
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    References listed on IDEAS

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    1. Timothy Bates & Robert McGuckin, 1990. "The Characteristics of Business Owners Data Base," Journal of Human Resources, University of Wisconsin Press, vol. 25(4), pages 736-751.
    2. Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-867, June.
    3. Ihlanfeldt, Keith R & Young, Madelyn V, 1994. "Intrametropolitan Variation in Wage Rates: The Case of Atlanta Fast-Food Restaurant Workers," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 425-433, August.
    4. Timothy Bates & Darrell Williams, 1995. "Preferential Procurement Programs Do Not Necessarily Help Minority-Owned Business," Working Papers 95-1, Center for Economic Studies, U.S. Census Bureau.
    5. Roger Waldinger & Thomas Bailey, 1991. "The Continuing Significance of Race: Racial Conflict and Racial Discrimination in Construction," Politics & Society, , vol. 19(3), pages 291-323, September.
    6. Moore, Robert L, 1983. "Employer Discrimination: Evidence from Self-Employed Workers," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 496-501, August.
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    Citations

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    Cited by:

    1. Paul Lawless, 2002. "Power and Conflict in Pro-growth Regimes: Tensions in Economic Development in Jersey City and Detroit," Urban Studies, Urban Studies Journal Limited, vol. 39(8), pages 1329-1346, July.
    2. Alicia Robb & Robert Fairlie, 2006. "Determinants of Business Success: An Examination of Asian-Owned Businesses in the United States," Working Papers 06-32, Center for Economic Studies, U.S. Census Bureau.
    3. Manuel Carvajal, 2006. "Economic grounds for affirmative action: The evidence on architects and engineers in South Florida," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 515-538.
    4. Robert W. Fairlie & Alicia M. Robb, 2007. "Why Are Black-Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 25(2), pages 289-323.
    5. Günseli Berik & Cihan Bilginsoy, 2006. "Still a wedge in the door: women training for the construction trades in the USA," International Journal of Manpower, Emerald Group Publishing Limited, vol. 27(4), pages 321-341, June.
    6. Magnus Lofstrom & Timothy Bates, 2013. "African Americans’ pursuit of self-employment," Small Business Economics, Springer, vol. 40(1), pages 73-86, January.
    7. Timothy Bates & Lisa Servon, 1998. "Microenterprise As An Exit Route From Poverty:* Recommendations For Programs And Policy Makers," Working Papers 98-17, Center for Economic Studies, U.S. Census Bureau.
    8. Josiane Isingizwe & Ricardo Eiris & Masoud Gheisari, 2023. "Racial Disparities in the Construction Domain: A Systematic Literature Review of the U.S. Educational and Workforce Domain," Sustainability, MDPI, vol. 15(7), pages 1-18, March.
    9. Robert W. Fairlie & Alicia M. Robb, 2008. "Race and Entrepreneurial Success: Black-, Asian-, and White-Owned Businesses in the United States," MIT Press Books, The MIT Press, edition 1, volume 1, number 026206281x, December.
    10. Timothy Bates, 2006. "Discrimination in the Chicago-area construction industry handicaps minority-owned firms," The Review of Black Political Economy, Springer;National Economic Association, vol. 33(4), pages 7-26, March.
    11. Vivian Price, 2002. "Race, Affirmative Action, and Women's Employment in US Highway Construction," Feminist Economics, Taylor & Francis Journals, vol. 8(2), pages 87-113.
    12. Robert Fairlie & Justin Marion, 2012. "Affirmative action programs and business ownership among minorities and women," Small Business Economics, Springer, vol. 39(2), pages 319-339, September.

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