ABSTRACT

This main purpose of this chapter is to estimate racial disparities in selfemployment rates and earnings at a level of specificity that is more perti­ nent to the strict scrutiny standard than that found in existing academic research. This is a more interesting and relevant task than in the past due to the advent of Croson, and few available data sources are up to the task. The estimates in this chapter provide the unadjusted, or gross, racial and ethnic disparities with which the adjusted, or net, disparities will be com­ pared in the next chapter to determine the relative importance of “qualifi­ cations” versus “discrimination” in accounting for racial differences in business enterprise activity.