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The Impact of City Contracting Set-Asides on Black Self-Employment and Employment

51 Pages Posted: 16 Apr 2013  

Aaron Chatterji

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

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Date Written: April 16, 2013

Abstract

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.

Keywords: entrepreneurship, affirmative action, race, self-employment, contracting

JEL Classification: J150

Suggested Citation

Chatterji, Aaron and Chay, Kenneth Y. and Fairlie, Robert W., The Impact of City Contracting Set-Asides on Black Self-Employment and Employment (April 16, 2013). CESifo Working Paper Series No. 4182. Available at SSRN: https://ssrn.com/abstract=2251777

Aaron Chatterji

Duke University - Fuqua School of Business ( email )

Box 90120
Durham, NC 27708-0120
United States

Kenneth Y. Chay

University of California, Berkeley - Department of Economics ( email )

549 Evans Hall #3880
Berkeley, CA 94720-3880
United States
510-643-8596 (Phone)
510-642-0638 (Fax)

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Robert W. Fairlie (Contact Author)

University of California, Santa Cruz - Department of Economics ( email )

Department of Economics
Engineering 2 Bldg.
Santa Cruz, CA 95064
United States
831-459-3332 (Phone)

HOME PAGE: http://econ.ucsc.edu/~fairlie/

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