A new study finds FEMA disaster aid boosts entrepreneurship, increases racial disparities

Summary: New research by sociologists at Rice University finds that when a natural disaster hits an area, self-employment tends to go up. But those gains also come with inequities. Racial minorities consistently see fewer gains in entrepreneurship than white residents. And for reasons that aren’t still completely clear, the gap gets wider depending on how much disaster aid FEMA contributes to local relief programs. Asia Bento is a doctoral fellow in Rice’s sociology department, and Jim Elliott is a professor of sociology at Rice’s Kinder Institute for Urban Research. They joined the Federal Drive to talk about some of their findings. Learn more about your ad choices. Visit megaphone.fm/adchoices