Neighborhood Segregation and Black Entrepreneurship

Eric Fesselmeyer and Kiat Ying Seah

ERES from European Real Estate Society (ERES)

Abstract: We examine the causal effect of neighborhood segregation on black entrepreneurship. We address neighborhood sorting by analyzing city averages and omitted variable bias by instrumenting for segregation using historical railroad configurations. We find that segregation has a significant positive effect. Additionally, in order to minimize the effect of cross-city sorting, we use a narrower sample constructed from outcomes of young adults and find a similar effect. Our findings are important because historically entrepreneurship has been an avenue out of poverty, and entrepreneurship has been promoted as a way to decrease welfare and unemployment.

Keywords: Entrepreneurship; Inequality; Segregation (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2017-07-01
New Economics Papers: this item is included in nep-ent and nep-ure
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Related works:
Journal Article: Neighborhood segregation and black entrepreneurship (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:arz:wpaper:eres2017_277

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