35 Pages Posted: 7 Oct 2007
Date Written: October 2007
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: 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