The Impact of City Contracting Set-Asides on Black Self-Employment and Employment
Duke University - Fuqua School of Business
Kenneth Y. Chay
University of California, Berkeley - Department of Economics; National Bureau of Economic Research (NBER)
Robert W. Fairlie
University of California, Santa Cruz - Department of Economics
April 16, 2013
CESifo Working Paper Series No. 4182
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.
Number of Pages in PDF File: 51
Keywords: entrepreneurship, affirmative action, race, self-employment, contracting
JEL Classification: J150
Date posted: April 16, 2013
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