The impact of city contracting set-asides on black self-employment and employment


Journal Article

In the 1980s, many US 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 AfricanAmericanmen. Black business ownership rates increased significantly after program initiation, with the black-white gap falling 3 percentage points. The evidence that the racial gap in employment also fell is less clear as it depends on assumptions about the continuation of preexisting trends. The black gains were concentrated in industries heavily affected by set-asides, and they mostly benefited the better educated. © 2014 by The University of Chicago. All rights reserved.

Full Text

Duke Authors

Cited Authors

  • Chatterji, AK; Chay, KY; Fairlie, RW

Published Date

  • January 1, 2014

Published In

Volume / Issue

  • 32 / 3

Start / End Page

  • 507 - 561

International Standard Serial Number (ISSN)

  • 0734-306X

Digital Object Identifier (DOI)

  • 10.1086/675228

Citation Source

  • Scopus