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Race and self-employment: The role of training programs, self-employment background, and access to financing

  • Michaelides, Marios

This paper uses data from Project GATE to examine the efficacy of offering free self-employment assistance to unemployed individuals interested in self-employment, overall and by race. We also examine the effect of participants’ self-employment background, finances, and personal circumstances on their self-employment outcomes. We find that Project GATE led to significant gains in the outcomes of unemployed participants, particularly for black participants. Our analyses also show that significant portions of the race disparities in self-employment outcomes among unemployed participants are attributed to race differences in access to financing. The policy implications of our findings are discussed.

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File URL: https://mpra.ub.uni-muenchen.de/20884/1/MPRA_paper_20884.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20884.

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Date of creation: 01 Feb 2010
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Handle: RePEc:pra:mprapa:20884
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  1. Ken Cavalluzzo & John Wolken, 2005. "Small Business Loan Turndowns, Personal Wealth, and Discrimination," The Journal of Business, University of Chicago Press, vol. 78(6), pages 2153-2178, November.
  2. David G. Blanchflower & Phillip B. Levine & David J. Zimmerman, 1998. "Discrimination in the Small Business Credit Market," NBER Working Papers 6840, National Bureau of Economic Research, Inc.
  3. Michaelides, Marios & Benus, Jacob, 2012. "Are self-employment training programs effective? Evidence from Project GATE," Labour Economics, Elsevier, vol. 19(5), pages 695-705.
  4. Fairlie, Robert W & Robb, Alicia M., 2005. "Why Are Black-Owned Businesses Less Successful than White-Owned Businesses? The Role of Families, Inheritances, and Business Human Capital," Santa Cruz Department of Economics, Working Paper Series qt5gk2188g, Department of Economics, UC Santa Cruz.
  5. Alicia Robb & Robert Fairlie, 2006. "Access to Financial Capital Among U.S. Businesses: The Case of African-American Firms," Working Papers 06-33, Center for Economic Studies, U.S. Census Bureau.
  6. Ellen R. Rissman, 2003. "Self-employment as an alternative to unemployment," Working Paper Series WP-03-34, Federal Reserve Bank of Chicago.
  7. Jacob Benus & Sheena McConnell & Jeanne Bellotti & Theodore Shen & Kenneth Fortson & Daver Kahvecioglu, 2008. "Growing America Through Entrepreneurship: Findings from the Evaluation of Project GATE," Mathematica Policy Research Reports afeceaeccbf54835ae4f79e73, Mathematica Policy Research.
  8. 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.
  9. Paul D. Reynolds & Nancy M. Carter & William B. Gartner & Patricia G. Greene, 2004. "The Prevalence of Nascent Entrepreneurs in the United States: Evidence from the Panel Study of Entrepreneurial Dynamics," Small Business Economics, Springer, vol. 23(4), pages 263-284, November.
  10. repec:mpr:mprres:6190 is not listed on IDEAS
  11. Timothy Bates, 1985. "Entrepreneur Human Capital Endowments and Minority Business Viability," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 540-554.
  12. Lofstrom, Magnus & Bates, Timothy, 2007. "African Americans' Pursuit of Self-Employment," IZA Discussion Papers 3156, Institute for the Study of Labor (IZA).
  13. Fairlie, Robert, 2014. "Ethnic and Racial Self-Employment Differences and Possible Explanations," Santa Cruz Department of Economics, Working Paper Series qt24p7v6gc, Department of Economics, UC Santa Cruz.
  14. Daniela Glocker & Viktor Steiner, 2007. "Self-Employment - a Way to End Unemployment?: Empirical Evidence from German Pseudo-Panel Data," Discussion Papers of DIW Berlin 661, DIW Berlin, German Institute for Economic Research.
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