Beyond the Pipeline (Problem): Examining Racial and Ethnic Representation in 21st Century High Technology Self‐employment

ABSTRACT Is the racial variation in the tech labor force and tech entrepreneurship associated with differences in STEM degree attainment? Using data from the American Community Survey, we examine whether racial disparities in tech employment and entrepreneurship reflect differences in STEM degree attainment within the labor force, a challenge known as the tech pipeline problem. We document that White workers are overrepresented in tech entrepreneurship, while Black, Hispanic, and Asian workers are underrepresented in tech entrepreneurship. Notably, Black workers are the only group underrepresented in tech employment relative to their share of the STEM‐educated labor force. Our findings suggest that gaps in STEM degree attainment account for only a small portion of the racial disparity in the tech labor force. We also find important differences in the relationship between STEM degree attainment, tech employment, and tech entrepreneurship by race. We conclude the paper with a proposed research agenda for further study.