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

Aaron K. Chatterji (), Kenneth Y. Chay () and Robert Fairlie
Additional contact information
Aaron K. Chatterji: Duke University
Kenneth Y. Chay: Brown University

No 7298, IZA Discussion Papers from Institute of Labor Economics (IZA)

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 estimate their 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.

Keywords: entrepreneurship; self-employment; race; black; African-American; contracting; affirmative action (search for similar items in EconPapers)
JEL-codes: J15 L26 (search for similar items in EconPapers)
Pages: 61 pages
Date: 2013-03
New Economics Papers: this item is included in nep-ent and nep-ure
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Citations: View citations in EconPapers (8)

Published - published in: Journal of Labor Economics, 2014, 32 (3), 507-561

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Related works:
Journal Article: The Impact of City Contracting Set-Asides on Black Self-Employment and Employment (2014)
Working Paper: The Impact of City Contracting Set-Asides on Black Self-Employment and Employment (2013)
Working Paper: The Impact of City Contracting Set-Asides on Black Self-Employment and Employment (2013)
Working Paper: The Impact of City Contracting Set-Asides on Black Self-Employment and Employment (2013)
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