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

Robert Fairlie

Santa Cruz Department of Economics, Working Paper Series from Department of Economics, UC Santa Cruz

Abstract: Estimates from the Panel Study of Income Dynamics (PSID) 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, I find that racial differences in asset levels and probabilities of having self-employed fathers explain a large part of the black/white gap in the entry rate, but almost none of the gap in the exit rate.

Keywords: Business, Social and Behavioral Sciences, entrepreneurship; inequality, race, minorities, business ownership, labor (search for similar items in EconPapers)
Date: 2014-01-01
New Economics Papers: this item is included in nep-ent and nep-lab
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Citations: View citations in EconPapers (2)

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Related works:
Working Paper: The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment (2014)
Journal Article: The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment (1999)
Working Paper: The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment (1999)
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