Abstract
The economic and social decline of American central cities has been well documented, especially as these cities become increasingly socially and economically isolated entities. The flight of industrial jobs from inner cities to suburban areas resulted in increasing poverty and increasing unemployment for inner-city residents. This decline has profoundly affected African Americans who are disproportionately represented among the urban poor. While central cities have been declining, American entrepreneurship has generally been increasing, with a 20% increase between 1992 and 1997. This article examines whether central city residence contributes to or detracts from self-employment. The research question is: What is the effect of central city residence on the likelihood of self-employment for African Americans and Whites?
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