Black Entrepreneurs, Job Creation, and Financial Constraints
نویسندگان
چکیده
Black-owned businesses tend to operate with less finance and employ fewer workers than those owned by Whites. Motivated a simple conceptual framework, we document these facts show they are causally connected using large firm-level surveys linked universal employer data from the Census Bureau. We find that racial financing gap is most pronounced at start-up tends narrow firm age. At any age, firms likely receive bank loans, more refrain applying because expect denial, report lack of reduces their profitability. Yet observable characteristics Black entrepreneurs similar in respects Whites, some ways - higher education, growth-oriented motivations, involvement business would seem imply higher, not lower, demand for finance. Concerning employment, have on average about 12 percent employees but difference drops when controlling age other characteristics. However, analysis holds financial variables constant, results equally well-financed be larger White-owned seven percent. Exploiting credit supply shock changing assignment Community Reinvestment Act treatment through Regression Discontinuity Design panel regression expanded access raises employment 5-7 percentage points treated neighborhoods.
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ژورنال
عنوان ژورنال: Social Science Research Network
سال: 2021
ISSN: ['1556-5068']
DOI: https://doi.org/10.2139/ssrn.3855967