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Title: Racial Differences in Self-employment Exits
Resulting in 1 citation.
1. Ahn, Taehyun
Racial Differences in Self-employment Exits
Small Business Economics 36,2 (February 2011): 169-186.
Also: http://www.springerlink.com/content/30367772446p5l44/
Cohort(s): NLSY79
Publisher: Kluwer Academic Publishers
Keyword(s): Entrepreneurship; Exits; Modeling, Logit; Racial Differences; Self-Employed Workers; Transition Rates, Activity to Work; Transitional Programs; Work History

Permission to reprint the abstract has not been received from the publisher.

Using detailed work history data in the 1979 National Longitudinal Survey of Youth, I investigate the reasons behind the racial gap in self-employment. My analysis of an 'age uniform' sample of men, all of whom are observed from age 22 to 40 years, reveals that racial differences in cross-sectional self-employment rates are largely due to the fact that minority workers' self-employment spells are relatively short-lived. Moreover, I find that minority workers' relatively high exit rates are driven primarily by transitions to nonemployment. Estimates from a multinomial logit model of self-employment exits suggest that minority workers' weak attachment to the labor market prior to entering self-employment is an important determinant of their transition from self-employment to nonemployment, while lack of prior industry and self-employment experience contributes to minorities' transitions to wage employment. When I assign blacks and Hispanics the same (mean) work histories as whites, the predicted black-white gap in the first-year self-employment survival rate decreases by 31% and the Hispanic-white gap decreases by 14%. [ABSTRACT FROM AUTHOR]

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Bibliography Citation
Ahn, Taehyun. "Racial Differences in Self-employment Exits." Small Business Economics 36,2 (February 2011): 169-186.