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Racial Separation Influences on the Demography of Urban Small Firms

35 Pages Posted: 7 Oct 2007  

Gregory Fairchild

University of Virginia - Darden School of Business

Date Written: October 2007

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.

Keywords: Racial Segregation, Minority Business Enterprises, Ethnic Enclaves

Suggested Citation

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

Gregory Fairchild (Contact Author)

University of Virginia - 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

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