Entrepreneurial finance, credit cards, and race

Published

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

  • October 1, 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

Citation Source

  • Scopus