Barriers to black entrepreneurship: Implications for welfare and aggregate output over time

The number of black-owned businesses in the U.S. has increased dramatically since 1980s, even compared to non-black-owned and rise black labor-market participation. From 1982 2012 fraction participants who owned rose from 4 16 percent, an increase 14 19 percent for other participants. Combined with evidence, this suggests entrepreneurs have faced significant barriers starting running these declined over time. Interpreted through a model entrepreneurship, we find declining led permanent 14.4 (consumption-equivalent) welfare, 5.2 output per worker (compared observed 70 increase), 9 welfare These impacts are addition any gains barriers.