What does it take to be able to own and operate a taxi and earn $30,000, $40,000 or more a year? You need to purchase a used car and liability insurance. Compared with other businesses, the startup cost to become a taxi owner/operator is modest; that’s until you have to come up with money for a license. In May 2010, the price of a license, called a medallion, to own one taxi in New York City sold for $603,000.

As referenced in my recent book, “Race and Economics,” New York City is not alone. In Chicago, a taxi license costs $56,000, Boston $285,000 and Philadelphia $75,000.