Affirmative Action and the Utilization of Minority‐ and Women‐Owned Businesses in Highway Procurement

17 Pages Posted: 29 Jun 2011

See all articles by Justin G. Marion

Justin G. Marion

University of California, Santa Cruz - Division of Social Sciences

Date Written: July 2011

Abstract

The Federal Highway Administration (FHWA) mandates states' use of affirmative action when awarding federally funded road construction projects. Here I document the effectiveness of this program in increasing purchases from disadvantaged business enterprises (DBEs). Higher goals for the utilization of DBEs, both across states over time and across projects within California, is associated with a greater share of contract dollars awarded to DBEs. This effect is concentrated among minority‐owned firms and is stronger when goals are more likely to be binding and in states with an apparently stricter enforcement regime.

JEL Classification: J15, H57

Suggested Citation

Marion, Justin G., Affirmative Action and the Utilization of Minority‐ and Women‐Owned Businesses in Highway Procurement (July 2011). Economic Inquiry, Vol. 49, Issue 3, pp. 899-915, 2011. Available at SSRN: https://ssrn.com/abstract=1874494 or http://dx.doi.org/10.1111/j.1465-7295.2009.00259.x

Justin G. Marion (Contact Author)

University of California, Santa Cruz - Division of Social Sciences ( email )

401 Engineering 2
1156 High Street
Santa Cruz, CA 95064
United States
831-459-2848 (Phone)
831-459-5077 (Fax)

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