Race, gender, and survivalist entrepreneurship in large northern cities during the Great Depression

In times of widespread joblessness, displaced workers often become self-employed, in order to survive economically. Applying the theory of survivalist entrepreneurship, this article examines racial and gender differences in the relationship between unemployment and self-employment, analyzing census data on northern U.S. cities during the Great Depression. The results show that, consistent with the theory, the entrepreneurial response to long-term joblessness varied by race and gender. White men, the most resource-advantaged group, reacted by becoming self-employed retailers in the mainstream economy. Yet, Non-white women, the most resource-disadvantaged group, responded by becoming self-employed in the personal services sector of the informal economy, where resource deprivation did not impede their entrepreneurial efforts.