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Creators/Authors contains: "Wold, Jared"

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  1. ; ; ; ; (, AEA Papers and Proceedings)
    We document the smaller average employment size and lower financial access of Black-owned businesses compared to White-owned businesses. Controlling for other characteristics, we find that observed differences in finance account for 60 percent of the 11.3 percent racial gap in number of employees; differences in returns account for 103 percent. The results imply that if both the levels and returns on finance were equalized across races, then Black-owned firms would be 18.4 percent larger than their actual size. Equalizing financial factors alone would reverse the firm size gap so that Black-owned firms would be larger than White-owned firms by 7.1 percent. 
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