Small Business Growth and Failure during the Great Recession: The Role of House Prices, Race & Gender
November 2016
Working Paper Number:
carra-2016-08
Abstract
Using 2002-2011 data from the Longitudinal Business Database linked to the 2002 and 2007 Survey of Business Owners, this paper explores whether (through a collateral channel) the rise in home prices over the early 2000's and their subsequent fall associated with the Great Recession had differential impacts on business performance across owner race, ethnicity and gender. We find that the employment growth rate of minority-owned firms, particularly black and Hispanic-owned firms, is more sensitive to changes in house prices than is that of their nonminority-owned counterparts.
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market,
sale,
financial,
entrepreneur,
entrepreneurship,
minority,
finance,
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owned businesses,
hispanic,
proprietor,
recession,
small businesses,
loan,
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housing,
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Center for Administrative Records Research and Applications
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