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The Absence of the African‐American Owned Business: An Analysis of the Dynamics of Self‐Employment

Robert W. Fairlie

University of California, Santa Cruz

Estimates from the Panel Study of Income Dynamics indicate that African-American men are one-third as likely to be self-employed as white men. The large discrepancy is due to a black transition rate into self-employment that is approximately one-half the white rate and a black transition rate out of self-employment that is twice the white rate. Using a new variation of the Blinder-Oaxaca decomposition technique, the author finds that racial differences in asset levels and probabilities of having self-employed fathers explain a large part of the gap in the entry rate, but almost none of the gap in the exit rate. Copyright 1999 by University of Chicago Press.

DOI

10.1086/209914

Volume

17 (1)

Pages

80-108

Language

en

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BibTeX

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