The State of Minority- and Women- Owned ... - Cleveland.com

Market-Based Disparities in Business Formation and Business Owner Earnings
For the Goods and Services sector, Specification 1 in Table 5.6 shows large, adverse, and
statistically significant business owner earnings disparities for African Americans, Hispanics,
Asians/Pacific Islanders, Native Americans, persons reporting multiple races, and nonminority
women consistent with the presence of discrimination in these markets. The measured difference
for African Americans is 38.7 percent lower than for comparable nonminority males; for
Hispanics, 24.1 percent lower; for Asians/Pacific Islanders, 10.0 percent lower; for Native
Americans, 40.3 percent lower; for persons reporting two or more races, 38.1 percent lower; and
for nonminority women, 39.4 percent lower.
b. Specifications 2 and 3 - the Full Model Including CLEVMA-Specific
Interaction Terms 239
Next, we turn to Specifications 2 and 3 in Tables 5.4 through 5.6. Specification 2 is the basic
regression model enhanced by a set of interaction terms to test whether minorities and women in
the CLEVMA differ significantly from those elsewhere in the U.S. economy. Specification 3
drops any CLEVMA interaction terms that are not statistically significant.
For the economy as a whole in 2006-2010, Table 5.4 shows that none of the CLEVMA
interaction terms for minorities or women are statistically significant, indicating that disparities
are, on average, no better or worse in the CLEVMA than in the nation as a whole.
For the construction sector in 2006–2010, Table 5.5 shows that, with two exceptions, the
estimates for the CLEVMA are in agreement with results for the nation as a whole; that is,
disparities in the CLEVMA are no better or worse than in the nation as a whole. For persons
reporting two or more races, disparities in the CLEVMA are significantly worse than in the
nation as a whole. For Native Americans, they are significantly better. 240
For the goods and services sector in 2006–2010, Table 5.6 shows that none of the CLEVMA
interaction terms for minorities or women are statistically significant, indicating that disparities
are, on average, no better or worse in the CLEVMA than in the nation as a whole.
239 See above, section B.3.b., for a detailed description of Specifications 2 and 3.
240 The coefficient on the Native American indicator is, however, of a size that indicates a small sample may be
skewing the result.
NERA Economic Consulting 159