Labor & Economic News Blog
Thursday, May 09, 2013
The Impact of City Contracting Set-Asides on Black Self-Employment and EmploymentThe Impact of City Contracting Set-Asides on Black Self-Employment and Employment
Aaron Chatterji, Kenneth Chay, and Robert Fairlie ask how programs reserving a proportion of government contracts for minority-owned businesses (set-asides) that many U.S. cities put in place during the 1980s affected employment and self-employment among African-Americans. They find that the black-white gap in business ownership rates fell 3 percentage points after the introduction of these programs. Blacks' gains in employment were concentrated in industries heavily affected by set-asides, and the programs mainly benefited those who were better educated.
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