Entrepreneurial finance, credit cards, and race

Journal Article

This paper examines the impact of financial deregulation on entrepreneurship. We assess the impact of credit card deregulation on transitions into self-employment using state-level removal of credit card interest rate ceilings following the US Supreme Court's 1978 Marquette decision as a quasi-natural experiment. We find that credit card deregulation increases the probability of entrepreneurial entry, with a particularly strong effect for black entrepreneurs. We demonstrate that these effects are magnified in states with a history of racial discrimination and link the results to discrimination-based barriers to entry. © 2012 Elsevier B.V.

Full Text

Duke Authors

Cited Authors

  • Chatterji, AK; Seamans, RC

Published Date

  • 2012

Published In

Volume / Issue

  • 106 / 1

Start / End Page

  • 182 - 195

International Standard Serial Number (ISSN)

  • 0304-405X

Digital Object Identifier (DOI)

  • 10.1016/j.jfineco.2012.04.007