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Social and Behavioral Sciences Commons

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Business

Singapore Management University

Entrepreneurship

Research Collection College of Integrative Studies

Articles 1 - 2 of 2

Full-Text Articles in Social and Behavioral Sciences

Neighborhood Segregation And Black Entrepreneurship, Eric Fesselmeyer, Kiat Ying Seah May 2017

Neighborhood Segregation And Black Entrepreneurship, Eric Fesselmeyer, Kiat Ying Seah

Research Collection College of Integrative Studies

We examine the causal effect of neighborhood segregation on black entrepreneurship. We address neighborhood sorting by analyzing city averages and omitted variable bias by instrumenting for segregation using historical railroad configurations. We find that segregation has a significant positive effect: a 10 percentage point increase in the dissimilarity index decreases the racial gap by about 3.3 percentage points. To minimize the effect of cross-city sorting, we use a narrower sample constructed from outcomes of young adults and find a similar effect. Our findings are importantbecause historically, entrepreneurship has been an avenue out of poverty, and entrepreneurship has been promoted as …


Neighborhood Segregation And Black Entrepreneurship, Eric Fesselmeyer, Kiat Ying Seah May 2017

Neighborhood Segregation And Black Entrepreneurship, Eric Fesselmeyer, Kiat Ying Seah

Research Collection College of Integrative Studies

We examine the causal effect of neighborhood segregation on black entrepreneurship. We address neighborhood sorting by analyzing city averages and omitted variable bias by instrumenting for segregation using historical railroad configurations. We find that segregation has a significant positive effect: a 10 percentage point increase in the dissimilarity index decreases the racial gap by about 3.3 percentage points. To minimize the effect of cross-city sorting, we use a narrower sample constructed from outcomes of young adults and find a similar effect. Our findings are importantbecause historically, entrepreneurship has been an avenue out of poverty, and entrepreneurship has been promoted as …