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Can information reduce ethnic discrimination? Evidence from Airbnb
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Laouenan, Morgane and Rathelot, Roland (2022) Can information reduce ethnic discrimination? Evidence from Airbnb. American Economic Journal: Applied Economics, 14 (1). pp. 107-132. doi:10.1257/app.20190188 ISSN 1945-7782.
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Official URL: https://doi.org/10.1257/app.20190188
Abstract
We use data from Airbnb to identify the mechanisms underlying discrimination against ethnic-minority hosts. Within the same neighbourhood, hosts from minority groups charge 3.2% less for comparable listings. Since ratings provide guests with increasingly rich information about a listing's quality, we can measure the contribution of statistical discrimination, building upon Altonji and Pierret (2001). We find that statistical discrimination can account for the whole ethnic price gap: ethnic gaps would disappear if all unobservables were revealed. Also, three quarters (2.5 points) of the initial ethnic gap can be attributed to inaccurate beliefs by potential guests about hosts' average group quality.
| Item Type: | Journal Article | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Subjects: | H Social Sciences > HD Industries. Land use. Labor H Social Sciences > HF Commerce H Social Sciences > HT Communities. Classes. Races |
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| Divisions: | Faculty of Social Sciences > Economics | |||||||||||||||
| Library of Congress Subject Headings (LCSH): | Airbnb (Firm), Race discrimination, Race discrimination -- Statistics, Racism , Vacation rentals, Vacation rentals -- Statistics, Electronic commerce, Electronic commerce -- Statistics | |||||||||||||||
| Journal or Publication Title: | American Economic Journal: Applied Economics | |||||||||||||||
| Publisher: | American Economic Association | |||||||||||||||
| ISSN: | 1945-7782 | |||||||||||||||
| Official Date: | January 2022 | |||||||||||||||
| Dates: |
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| Volume: | 14 | |||||||||||||||
| Number: | 1 | |||||||||||||||
| Page Range: | pp. 107-132 | |||||||||||||||
| DOI: | 10.1257/app.20190188 | |||||||||||||||
| Status: | Peer Reviewed | |||||||||||||||
| Publication Status: | Published | |||||||||||||||
| Access rights to Published version: | Restricted or Subscription Access | |||||||||||||||
| Date of first compliant deposit: | 11 January 2021 | |||||||||||||||
| Date of first compliant Open Access: | 11 January 2021 | |||||||||||||||
| RIOXX Funder/Project Grant: |
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