The Status of African American Men in the New York City Construction Industry

Why Are Black‐Owned Businesses Less Successful than White‐Owned Businesses? The Role of Families, Inheritances, and Business Human Capital

“…In addition, industry choice may be constrained due to a lack of relevant skills and discrimination (Boden, 1996, Boden and Nucci 2002, and Robb, 2000. Discrimination may occur directly in self-employment through limited opportunities to penetrate networks, such as those in construction (Bates 1993, Feagin and Imani 1994, Bates and Howell 1997. Third, differences in industry concentrations may simply be due to differences in preferences.…”

“…Social networks may be especially important in industries such as construction in which deals are often made in informal settings (Feagin and Imani 1994). If minorities are blocked from these industries perhaps due to discrimination then their business networks may be restricted (Bates 1993, Feagin and Imani 1994, Bates and Howell 1997. Examining the retail 31 industry in New York, Rauch (2001) finds evidence that African-Americans businesses were less able to organize "mutual self-help" than immigrant businesses.…”

Microenterprise as an Exit Route from Poverty: Recommendations for Programs and Policy Makers

“…In Mexico, however, there is no counterpart to the US phenomenon of old-boy networks in construction that minimize access to skill acquisition for persons not connected with the applicable networks, including most minorities. As a result, skilled construction workers who are selfemployed are often immigrants, including most Hispanics and over 40% of blacks self-I Microenterprise as an Exit Route from Poverty I 429 employed in construction in the New York City area in 1987 (Bates & Howell, 1997). Possessing a skill such as carpentry is an important form of human capital and supports the notion that one needs appropriate human capital to pursue small business ownership/selfemployment successfully.…”

The Impact of City Contracting Set-Asides on Black Self-Employment and Employment

“…Set-aside programs may counteract the effects of consumer discrimination against black-owned businesses (Borjas and Bronars 1989, Meyer 1990and Kawaguchi 2005 and alleviate impediments to penetrating networks, such as those found in construction (Bates 1993, Feagin and Imani 1994, Bates and Howell 1997. Discrimination among potential suppliers, prime contractors, bonding firms and governments can also create barriers to black business entry and growth.…”