scholarly journals Entrepreneurship and the Racial Wealth Gap: The Impact of Entrepreneurial Success or Failure on the Wealth Mobility of Black and White Families

2021 ◽  
Author(s):  
Teresa Kroeger ◽  
Graham Wright
Keyword(s):  
Black People ◽  
Panel Study ◽  
Economic Cost ◽  
Black Business ◽  
White Families ◽  
Black And White ◽  
Racial Wealth Gap ◽  
Black Entrepreneurs ◽  
Wealth Gap ◽  
The Impact

AbstractResearch has repeatedly argued that increasing the rate at which Black people start businesses could reduce the racial wealth gap between Black and white families, but increasing the rate of Black entrepreneurship may actually exacerbate the racial wealth gap, due to the economic cost associated with business closure. Using longitudinal data from the Panel Study of Income Dynamics (PSID), we find that, as past work suggests, Black-owned businesses are less likely to remain open 4 years later, compared to white-owned businesses, and that, due to this disparity, Black business owners are more likely to experience downward economic mobility and less likely to experience upward mobility, compared to their white counterparts. These results suggest that improving the rate at which Black entrepreneurs succeed, rather than increasing the rate at which Black people become entrepreneurs, should be the target of efforts to leverage business ownership to reduce the racial wealth gap.

scholarly journals Costs of Raising Grandchildren on Grandmother-Adult Child Relations in Black and White Families

2021 ◽  
Vol 5 (Supplement_1) ◽  
pp. 393-394
Author(s):  
Yifei Hou ◽  
J Jill Suitor ◽  
Megan Gilligan ◽  
Destiny Ogle ◽  
Catherine Stepniak ◽  
...  
Keyword(s):  
Racial Differences ◽  
Adult Children ◽  
Process Model ◽  
Adult Child ◽  
Family Solidarity ◽  
White Families ◽  
Black And White ◽  
Child Relationship ◽  
White Mothers ◽  
The Impact

Abstract The cost of raising grandchildren on grandmothers’ mental and physical health has been well-documented; however, little is known about whether raising grandchildren also has a cost on grandmothers’ relationships with the adult children whose children the grandmothers have raised. Drawing from theories of exchange and affect, stress process model, and racial differences in intergenerational solidarity, we tested how raising grandchildren affects grandmother-adult child relations. Further, we explored the extent to which these patterns differed by race. To address this question, we used mixed-methods data collected from 553 older mothers regarding their relationships with their 2,016 adult children; approximately 10% of the mothers had raised one or more of their grandchildren “as their own.” Data were provided by the Within-Family Differences Study-I. Multilevel analyses showed that raising grandchildren was associated with greater closeness in grandmother-adult child relationship in Black families; however, in White families, raising grandchildren was associated with greater conflict in the grandmother-adult child relationship. Further, the differences by race in the effects of raising grandchildren on closeness and conflict were statistically significant. Qualitative analyses revealed that race differences in the association between raising grandchildren and relationship quality could be explained by mothers’ reports of greater family solidarity in Black than White families. Our findings highlight the ways in which race and family solidarity interact to produce differences in the impact of raising grandchildren on Black and White mothers’ assessment of the quality of their relationships with their adult children, consistent with broader patterns of racial differences in intergenerational cohesion.

The Impact of State Firearm Laws on Homicide Rates among Black and White Populations in the United States, 1991–2016

2019 ◽  
Vol 44 (4) ◽  
pp. 232-240 ◽  
Author(s):  
Anita Knopov ◽  
Michael Siegel ◽  
Ziming Xuan ◽  
Emily F Rothman ◽  
Shea W Cronin ◽  
...  
Keyword(s):  
Fixed Effects ◽  
Black People ◽  
State Level ◽  
The United States ◽  
Homicide Rates ◽  
Black And White ◽  
Author Identification ◽  
Background Check ◽  
Black Populations ◽  
The Impact

Abstract This study aimed to investigate the potential differential effects of state-level firearm laws on black and white populations. Using a panel design, authors examined the relationship between state firearm laws and homicide victimization rates among white people and black people in 39 states during the period between 1991 and 2016. Authors modeled homicide rates using linear regression with year and state fixed effects and controlled for a range of time-varying, state-level factors. Results showed that universal background check laws and permit requirement laws were associated with lower homicide rates among both white and black populations, and “shall issue” laws were associated with higher homicide rates among both white and black populations. Laws that prohibit firearm possession among people convicted of a violent misdemeanor or require relinquishment of firearms by people with a domestic violence restraining order were associated with lower black homicide rates, but not with white homicide rates. Author identification of heterogeneity in the associations between state firearm laws and homicide rates among different racial groups has implications for reducing racial health disparities.

LEGITIMACY, ATTITUDES AND INTENDED PATRONAGE: UNDERSTANDING CHALLENGES FACING BLACK ENTREPRENEURS

2015 ◽  
Vol 20 (01) ◽  
pp. 1550007 ◽  
Author(s):  
MICHAEL N. OGBOLU ◽  
ROBERT P. SINGH ◽  
ANTHONY WILBON
Keyword(s):  
Black People ◽  
The United States ◽  
Future Research ◽  
African Countries ◽  
Black And White ◽  
Traditional Research ◽  
Black Entrepreneurs ◽  
Black Entrepreneurship ◽  
Future Research Directions ◽  
The Individual

Traditional research on the reasons for the depressed rate of black entrepreneurship has focused on differences between black [note: The term "blacks" is used to represent the broader groups of blacks in the United States, which include African-Americans and also black people from African countries, the Caribbean and other countries.] and white entrepreneurs. In this paper, we move beyond the individual entrepreneur and study consumers' perceptual differences of black and white entrepreneurs. Using a multi-disciplinary theoretical framework to study 846 participants, we found empirical evidence that there are significant relationships between perceptions of legitimacy and consumer attitudes toward entrepreneurs and intended patronage. In addition, there appears to be differences in the way consumers perceive black and white entrepreneurs, which suggest significant challenges facing black entrepreneurs. Implications and future research directions are discussed.

Building the Black Metropolis

2017 ◽  
Keyword(s):  
Political Culture ◽  
Black Community ◽  
Black Business ◽  
Careful Examination ◽  
Black Communities ◽  
Black Entrepreneurs ◽  
Black Metropolis ◽  
Business Enterprises ◽  
The Impact ◽  
The City

This book examines the entrepreneurial experiences of and contributions by African American entrepreneurs in Chicago. Through a careful examination of black business activity in areas such as finance, media, and the underground economy known as “Policy,” this work illuminates the manner in which blacks in Chicago built a network of competing and cooperative enterprises and a culture of entrepreneurship unique to the city. This network lay at the center of black business development in Chicago as it allowed blacks there greater opportunity to fund and build businesses reliant on other blacks rather than those whose interests lay outside the black community. Further, it examines how blacks’ business enterprises challenged and changed the economic and political culture of the city to help fashion black communities on Chicago’s South and West sides. For much of the 20th century, Chicago was considered the single best demonstration of blacks’ entrepreneurial potential. From the time the city was founded by black entrepreneur Jean Baptiste DuSable and throughout the 20th century, business enterprises have been part black community life. From DuSable through black business titans like John H. Johnson, Oprah Winfrey, and Anthony Overton black entrepreneurs called the city home and built their empires there. How they did so and the impact of their success (and failure) is a key theme within this book. Additionally, this work analyzes how blacks in Chicago built their enterprises at the same time grappling with the major cultural, political, and economic shifts in America in the 19th and 20th century.

PUSH-PULL THEORY IN BLACK AND WHITE: EXAMINING RACIAL DIFFERENCES IN FIRM STARTUPS BEFORE AND AFTER THE GREAT RECESSION

2021 ◽  
Vol 26 (03) ◽  
Author(s):  
RACHEL MB ATKINS
Keyword(s):  
Racial Differences ◽  
Great Recession ◽  
Panel Study ◽  
The United States ◽  
Black And White ◽  
The Great Recession ◽  
Black Entrepreneurs ◽  
Before And After ◽  
The Difference ◽  
Starting A Business

Although Blacks in the United States suffered disproportionately high unemployment, housing and wealth losses during the Great Recession, little is known about the recession’s impact on Black entrepreneurship. This study uses data from the Panel Study of Income Dynamics (PSID) to estimate the difference in probability of starting a business before and after the recession for Black and White households. While the likelihood of starting a business declined for Whites after the Great Recession there were no statistically significant changes in the rate of firm startups among Blacks. Evidence supports the prosperity pull hypothesis for White but not Black entrepreneurs.

Intergenerational Economic Mobility and the Racial Wealth Gap

2021 ◽  
Vol 111 ◽  
pp. 206-210
Author(s):  
Jermaine Toney ◽  
Cassandra L. Robertson
Keyword(s):  
Income Inequality ◽  
Least Squares ◽  
Household Income ◽  
Family Background ◽  
Two Stage ◽  
Racial Wealth Gap ◽  
Growing Body ◽  
Wealth Gap ◽  
The Impact ◽  
The Relationship

A growing body of research documents the importance of wealth and the racial wealth gap in perpetuating inequality across generations. We examine the impact of wealth on child income. Our two-stage least squares regressions reveal that grandparental wealth has an important effect on the younger generation's stock, which in turn affects the younger generation's household income. We further explore the relationship between income and wealth by decomposing the child's income by race. We find that the intergroup disparity in income is mainly attributable to differences in family background. These findings indicate that wealth is an important source of income inequality.

scholarly journals Land and Racial Wealth Inequality

2011 ◽  
Vol 101 (3) ◽  
pp. 371-376 ◽  
Author(s):  
Melinda C Miller
Keyword(s):  
United States ◽  
Civil War ◽  
Home Ownership ◽  
Wealth Inequality ◽  
Southern United States ◽  
Cherokee Nation ◽  
Racial Wealth Gap ◽  
Wealth Gap ◽  
Using Data ◽  
The Impact

Could racial wealth inequality have been reduced if freed slaves had been granted land following the Civil War? This paper exploits a plausibly exogenous variation in policies of the Cherokee Nation and southern United States to identify the impact of free land on the size of the racial wealth gap. Using data on land, livestock, and home ownership, I find evidence that former slaves who had access to free land were absolutely wealthier and experienced lower levels of racial wealth inequality in 1880 than former slaves who did not. Furthermore, their children continued to experience these advantages in 1900.

Effects of Wife's Income on Family Income Inequality

1981 ◽  
Vol 10 (2) ◽  
pp. 211-232 ◽  
Author(s):  
Richard J. Harris ◽  
John J. Hedderson
Keyword(s):  
Income Inequality ◽  
Coefficient Of Variation ◽  
Family Income ◽  
Panel Study ◽  
Income Dynamics ◽  
White Families ◽  
Black And White

In this article, a method is developed to evaluate the effects of wife's income on family income inequality, and those effects are examined between 1967 and 1976 employing data from the Panel Study of Income Dynamics. The coefficient of variation is employed as a measure of family income inequality. Results indicate that income inequality increased substantially between 1967 and 1976 for U.S. families, but this increase was not due to the effects of wife's income. There have been substantial differences in the effects of wife's income for black and white families. In general, a movement toward greater equality of earnings between husbands and wives would tend to promote less family income inequality.

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