Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20558 
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dc.contributor.authorFairlie, Robert W.en
dc.contributor.authorRobb, Alicia M.en
dc.date.accessioned2009-01-28T16:15:00Z-
dc.date.available2009-01-28T16:15:00Z-
dc.date.issued2004-
dc.identifier.urihttp://hdl.handle.net/10419/20558-
dc.description.abstractFour decades ago, Nathan Glazer and Daniel Patrick Moynihan made the argument that theblack family "was not strong enough to create those extended clans that elsewhere weremost helpful for businessmen and professionals." Using data from the confidential andrestricted access Characteristics of Business Owners Survey, we investigate this hypothesisby examining whether racial differences in family business backgrounds can explain whyblack-owned businesses lag substantially behind white-owned businesses in sales, profits,employment size and survival probabilities? Estimates from the CBO indicate that blackbusiness owners have a relatively disadvantaged family business background compared withwhite business owners. Black business owners are much less likely than white businessowners to have had a self-employed family member owner prior to starting their business andare less likely to have worked in that family member's business. We do not, however, findsizeable racial differences in inheritances of business. Using a nonlinear decompositiontechnique, we find that the relatively low probability of having a self-employed family memberprior to business startup among blacks does not generally contribute to racial differences insmall business outcomes. Instead, the lack of prior work experience in a family businessamong black business owners, perhaps by limiting their acquisition of general and specificbusiness human capital, negatively affects black business outcomes. We also find thatlimited opportunities for acquiring specific business human capital through work experience inbusinesses providing similar goods and services contribute to worse business outcomesamong blacks. We compare these estimates to contributions from racial differences inowner's education, startup capital, geographical location and other factors.en
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x1292en
dc.subject.jelJ23en
dc.subject.jelJ15en
dc.subject.ddc330en
dc.subject.keywordbusiness outcomesen
dc.subject.keywordraceen
dc.subject.keywordfamilyen
dc.subject.keywordself-employmenten
dc.subject.stwSelbstständigeen
dc.subject.stwFarbige Bevölkerungen
dc.subject.stwWeisseen
dc.subject.stwUnternehmensentwicklungen
dc.subject.stwFamiliensoziologieen
dc.subject.stwErbeen
dc.subject.stwHumankapitalen
dc.subject.stwUnternehmeren
dc.subject.stwSchätzungen
dc.subject.stwVereinigte Staatenen
dc.titleWhy Are Black-Owned Businesses Less Successful than White-Owned Businesses? : The Role of Families, Inheritances, and Business Human Capital-
dc.typeWorking Paperen
dc.identifier.ppn399649700en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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