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Can Black Entrepreneurship Reduce Black-White Inequality in the United States?

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  • Susanne L. Toney

    (Hampton University)

  • Gregory N. Price

    (University of New Orleans)

Abstract

This paper considers whether Black entrepreneurship in the USA matters for Black-White inequality in well-being as measured by individual happiness. We utilize data from the 2018 General Social Survey on respondent self-reported levels of happiness to estimate fixed group effect logit specifications of self-reported happiness levels as a function of individual characteristics, including being a Black American, and a measure of entrepreneurship—self-employment. Parameter estimates reveal that accounting for self-employment entirely eliminates Black-White happiness inequality. Our results suggest that increasing Black entrepreneurship can reduce Black-White inequality in well-being as measured by happiness.

Suggested Citation

  • Susanne L. Toney & Gregory N. Price, 2021. "Can Black Entrepreneurship Reduce Black-White Inequality in the United States?," Journal of Economics, Race, and Policy, Springer, vol. 4(4), pages 294-301, December.
    • Handle: RePEc:spr:joerap:v:4:y:2021:i:4:d:10.1007_s41996-020-00065-y
    DOI: 10.1007/s41996-020-00065-y
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    References listed on IDEAS

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    1. Harbi, Sana El & Grolleau, Gilles, 2012. "Does self-employment contribute to national happiness?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 670-676.
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    7. Elizabeth Asiedu & James A. Freeman & Akwasi Nti-Addae, 2012. "Access to Credit by Small Businesses: How Relevant Are Race, Ethnicity, and Gender?," American Economic Review, American Economic Association, vol. 102(3), pages 532-537, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Black entrepreneurship; Happiness; Inequality;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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