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Race and self-employment: The role of training programs, self-employment background, and access to financing

Author

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  • Michaelides, Marios
Abstract
This paper uses data from Project GATE to examine the efficacy of offering free self-employment assistance to unemployed individuals interested in self-employment, overall and by race. We also examine the effect of participants’ self-employment background, finances, and personal circumstances on their self-employment outcomes. We find that Project GATE led to significant gains in the outcomes of unemployed participants, particularly for black participants. Our analyses also show that significant portions of the race disparities in self-employment outcomes among unemployed participants are attributed to race differences in access to financing. The policy implications of our findings are discussed.

Suggested Citation

  • Michaelides, Marios, 2010. "Race and self-employment: The role of training programs, self-employment background, and access to financing," MPRA Paper 20884, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:20884
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    References listed on IDEAS

    as
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    3. Fairlie, Robert W, 1999. "The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment," Journal of Labor Economics, University of Chicago Press, vol. 17(1), pages 80-108, January.
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    5. David G. Blanchflower & Phillip B. Levine & David J. Zimmerman, 2003. "Discrimination in the Small-Business Credit Market," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 930-943, November.
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    10. Michaelides, Marios & Benus, Jacob, 2012. "Are self-employment training programs effective? Evidence from Project GATE," Labour Economics, Elsevier, vol. 19(5), pages 695-705.
    11. Glocker, Daniela & Steiner, Viktor, 2007. "Self-Employment: A Way to End Unemployment? Empirical Evidence from German Pseudo-Panel Data," IZA Discussion Papers 2561, Institute of Labor Economics (IZA).
    12. Paul D. Reynolds & Nancy M. Carter & William B. Gartner & Patricia G. Greene, 2004. "The Prevalence of Nascent Entrepreneurs in the United States: Evidence from the Panel Study of Entrepreneurial Dynamics," Small Business Economics, Springer, vol. 23(4), pages 263-284, November.
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    14. repec:mpr:mprres:6190 is not listed on IDEAS
    15. Jacob Benus & Sheena McConnell & Jeanne Bellotti & Theodore Shen & Kenneth Fortson & Daver Kahvecioglu, "undated". "Growing America Through Entrepreneurship: Findings from the Evaluation of Project GATE," Mathematica Policy Research Reports afeceaeccbf54835ae4f79e73, Mathematica Policy Research.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    self-employment; small business; unemployment; workforce development; SEA; Project GATE;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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