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The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment

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  • Fairlie, Robert W

Abstract

Estimates from the Panel Study of Income Dynamics indicate that African-American men are one-third as likely to be self-employed as white men. The large discrepancy is due to a black transition rate into self-employment that is approximately one-half the white rate and a black transition rate out of self-employment that is twice the white rate. Using a new variation of the Blinder-Oaxaca decomposition technique, the author finds that racial differences in asset levels and probabilities of having self-employed fathers explain a large part of the gap in the entry rate, but almost none of the gap in the exit rate. Copyright 1999 by University of Chicago Press.

Suggested Citation

  • Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
    • Handle: RePEc:ucp:jlabec:v:17:y:1999:i:1:p:80-108
    DOI: 10.1086/209914
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