Racial Separation Influences on the Demography of Urban Small Firms

Fairchild, Gregory

doi:10.2139/ssrn.1019579

Abstract

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Racial Separation Influences on the Demography of Urban Small Firms

Gregory Fairchild

University of Virginia - Darden School of Business

October 2007

Darden Business School Working Paper

Abstract:
This study develops and estimates a model of residential segregation influences on demographic patterns in minority-owned firms. The prime hypothesis is that minority-owned firms in metropolitan areas with higher segregation will have a higher likelihood of hiring and servicing members of their own racial groups. Using data from the Multi-City Study of Urban Inequality (MCSUI), the paper's primary hypotheses were supported. Results show that diversity in a firm's workforce and customers varies inversely with the level of residential segregation in the area in which the firm is located.

Number of Pages in PDF File: 35

Keywords: Racial Segregation, Minority Business Enterprises, Ethnic Enclaves

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Date posted: October 7, 2007

Suggested Citation

Fairchild, Gregory, Racial Separation Influences on the Demography of Urban Small Firms (October 2007). Darden Business School Working Paper. Available at SSRN: http://ssrn.com/abstract=1019579 or http://dx.doi.org/10.2139/ssrn.1019579

Contact Information

Gregory Fairchild (Contact Author)

University of Virginia (UVA) - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/fairchild.htm