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The Impact of City Contracting Set-Asides on Black Self-Employment and Employment

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  • Chatterji, Aaron K
  • Chay, Kenneth Y
  • Fairlie, Robert W

Abstract

In the 1980s, many U.S. cities initiated programs reserving a proportion of government contracts for minority-owned businesses. The staggered introduction of these set-aside programs is used to estimatetheir impacts on the self-employment and employment rates of African-American men. Black business ownership rates increased significantly after program initiation, with the black-white gap falling three percentage points. The evidence that the racial gap in employment also fell is less clear as it is depends on assumptions about the continuation of pre-existing trends. The black gains were concentrated in industries heavily affected by set-asides and mostly benefited the better educated.

Suggested Citation

  • Chatterji, Aaron K & Chay, Kenneth Y & Fairlie, Robert W, 2013. "The Impact of City Contracting Set-Asides on Black Self-Employment and Employment," Santa Cruz Department of Economics, Working Paper Series qt479755b2, Department of Economics, UC Santa Cruz.
    • Handle: RePEc:cdl:ucscec:qt479755b2
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    References listed on IDEAS

    as
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    Cited by:

    1. Sameera Fazili, 2019. "Anchor Institution Strategies in the Southeast: Working with Hospitals and Universities to Support Inclusive Growth," FRB Atlanta Community and Economic Development Discussion Paper 2019-2, Federal Reserve Bank of Atlanta.
    2. Aaron K. Chatterji & Kenneth Y. Chay & Robert W. Fairlie, 2014. "The Impact of City Contracting Set-Asides on Black Self-Employment and Employment," Journal of Labor Economics, University of Chicago Press, vol. 32(3), pages 507-561.
    3. Aaron Chatterji & Edward Glaeser & William Kerr, 2014. "Clusters of Entrepreneurship and Innovation," Innovation Policy and the Economy, University of Chicago Press, vol. 14(1), pages 129-166.
    4. Sameera Fazili, 2019. "Anchor Institution Strategies in the Southeast: Working with Hospitals and Universities to Support Inclusive Growth," FRB Atlanta Community and Economic Development Discussion Paper 2019-02, Federal Reserve Bank of Atlanta.
    5. Mirjam Strupler Leiser & Stefan C. Wolter, 2017. "Empirical Evidence on the Effectiveness of Social Public Procurement Policy: The Case of the Swiss Apprenticeship Training System," LABOUR, CEIS, vol. 31(2), pages 204-222, June.

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