Economics

Black Businesses Saw Outsize Covid Hit to Earnings, Study Shows

A "Black Owned Business" sign in the window of a restaurant in Brooklyn, New York. 

Photographer: David Dee Delgado/Bloomberg
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Black business owners experienced much larger losses in earnings than their White counterparts during the height of the pandemic, likely widening long-term economic inequality, according to a new study.

Black-owned businesses saw earnings decrease 28% in 2020, compared to a 15% drop for White-owned businesses and a 17% overall decline, Robert Fairlie, an economics professor at the University of California at Santa Cruz, wrote in a paper. Latino and Asian businesses also experienced outsize declines.