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Many small businesses closed in the pandemic, but were economic losses disproportionately felt by businesses owned by people of color? This paper provides the first study of the impacts of COVID‐19 on racial inequality in business earnings. Pandemic‐induced losses to business earnings in 2020 were 16% to 19% for all business owners. Racial inequality increased in the pandemic: Black business owners experienced larger negative impacts on business earnings of 12% to 14% relative to White business owners. Regression estimates for Latinx and Asian business owners reveal negative point estimates but the estimates are not statistically significant. Using Blinder‐Oaxaca decompositions and a new pandemic‐focused decomposition technique, I find that the industry concentrations of Black, Latinx, and Asian business owners placed each of these groups at a higher risk of experiencing disproportionate business earnings losses in the pandemic. Higher education levels among Asian business owners helped insulate them from larger losses from COVID‐19. In the following year of economic recovery, 2021, business earnings rebounded strongly for all groups except for Asian business owners, who experienced large relative losses (which were partly due to industry concentrations). State‐level variation in policies and disease spread does not explain racial differences in business earnings losses or rebounds. [ABSTRACT FROM AUTHOR]

Four decades ago, Nathan Glazer and Daniel Patrick Moynihan made the argument that the black family "was not strong enough to create those extended clans that elsewhere were most helpful for businessmen and professionals." Using data from the confidential and restricted access Characteristics of Business Owners Survey, we investigate this hypothesis by examining whether racial differences in family business backgrounds can explain why black-owned businesses lag substantially behind white-owned businesses in sales, profits, employment size and survival probabilities?Estimates from the CBO indicate that black business owners have a relatively disadvantaged family business background compared with white business owners. Black business owners are much less likely than white business owners to have had a self-employed family member owner prior to starting their business and are less likely to have worked in that family member's business. We do not, however, find sizeable racial differences in inheritances of business. Using a nonlinear decomposition technique, we find that the relatively low probability of having a self-employed family member prior to business startup among blacks does not generally contribute to racial differences in small business outcomes. Instead, the lack of prior work experience in a family business among black business owners, perhaps by limiting their acquisition of general and specific business human capital, negatively affects black business outcomes. We also find that limited opportunities for acquiring specific business human capital through work experience in businesses providing similar goods and services contribute to worse business outcomes among blacks. We compare these estimates to contributions from racial differences in owner's education, startup capital, geographical location and other factors.

An important finding in the rapidly growing literature on self-employment is that the probability of self-employment is substantially higher among the children of business owners than among the children of non-business owners. Using data from the confidential and restricted-access Characteristics of Business Owners (CBO) Survey, we provide some suggestive evidence on the causes of intergenerational links in business ownership and the related issue of how having a family business background affects small business outcomes. Estimates from the CBO indicate that more than half of all business owners had a self-employed family member prior to starting their business. Conditional on having a self-employed family member, less than 50 percent of small business owners worked in that family member's business suggesting that it is unlikely that intergenerational links in self-employment are largely due to the acquisition of general and specific business human capital and that instead similarities across family members in entrepreneurial preferences may explain part of the relationship. In contrast, estimates from regression models conditioning on business ownership indicate that having a self-employed family member plays only a minor role in determining small business outcomes, whereas the business human capital acquired from prior work experience in a family member's business appears to be very important for business success. Estimates from the CBO also indicate that only 1.6 percent of all small businesses are inherited suggesting that the role of business inheritances in determining intergenerational links in self-employment is limited at best.

To identify the determinants of cross-country disparities in personal computer and Internet penetration, we examine a panel of 161 countries over the 1999-2001 period. Our candidate variables include economic variables (income per capita, years of schooling, illiteracy, trade openness), demographic variables (youth and aged dependency ratios, urbanization rate), infrastructure indicators (telephone density, electricity consumption), telecommunications pricing measures, and regulatory quality. With the exception of trade openness and the telecom pricing measures, these variables enter in as statistically significant in most specifications for computer use. A similar pattern holds true for Internet use, except that telephone density and aged dependency matter less. The global digital divide is mainly – but by no means entirely – accounted for by income differentials. For computers, telephone density and regulatory quality are of second and third importance, while for the Internet, this ordering is reversed. The region specific explanations for large disparities in computer and Internet penetration are generally very similar. Our results suggest that public investment in human capital, telecommunications infrastructure, and the regulatory infrastructure can mitigate the gap in PC and Internet use.

Using 1990 Census microdata, we explore ethnic, racial and immigrant differences in private school attendance. We find high rates of private school attendance among white natives, white immigrants, and Asian natives. In contrast, we find low private school rates among black and Hispanic natives and immigrants, Asian immigrants, and other natives. Variations in income per capita and especially parental education account for over 70% of the gap in private school attendance rates between white natives and all other groups. We discuss ramifications for racial, language, and socioeconomic segregation in America's schools, and possible effects of school vouchers on segregation.

Governments and donors around the world spend billions of dollars subsidizing entrepreneurship training programs. Unbiased evaluation estimates are paramount to understanding whether subsidies and investments in these programs are justified. The goal of this paper is to compare nonexperimental to experimental methods for evaluating the effectiveness of entrepreneurship training programs that provide training in management, marketing, accounting, legal, and other aspects of starting and running businesses. For the comparison, I take advantage of an unprecedented setting in which experimental and nonexperimental estimates are derived from the same underlying population of study participants. The Growing America through Entrepreneurship field experiment provides a uniquely large sample allowing for a separate nonexperimental analysis using only the control group. Experimental estimates indicate null effects of entrepreneurship training on business outcomes: business ownership, sales, and employment. In contrast, nonexperimental estimates using an extremely rich set of controls, including typically unobservable characteristics, such as previous family business experience, credit problems, and personality traits, find large, positive, and statistically significant effects. The nonexperimental estimates range from 21 to 22 percentage points (pp) for business ownership, $1300–2000 for average monthly sales, and 4–6 pp for hiring any employees at 1.5‐ and 5‐year follow‐ups. Nearest‐neighbor and propensity‐score matching models using detailed individual characteristics provide similarly large, positive, and statistically significant effects of entrepreneurship training on business outcomes. The findings have implications for choosing evaluation methods of government programs and provide evidence of positive selection bias which has more general implications on the scalability of entrepreneurship training programs to broader populations. [ABSTRACT FROM AUTHOR]

Although a large literature explores the achievement gap between minority and non-minority students, very little is known about whether disparities in access to technology are partly responsible. Data from the first-ever field experiment involving the random provision of free computers to low-income community college students for home use are used to explore whether home computers are beneficial to minority students. I find that minority students receiving free computers achieved better educational outcomes than the control group that did not receive free computers. Minority students may have benefitted more from receiving free computers because of fewer alternatives for accessing home computers due to lower rates of computer ownership among family, friends, and relatives. Implications for the achievement gap and policy are discussed. (Contains 13 tables and 3 figures.)