Can Information Reduce Ethnic Discrimination? Evidence from Airbnb
2022 ◽
Vol 14
(1)
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pp. 107-132
Keyword(s):
We use data from Airbnb to identify the mechanisms underlying discrimination against ethnic minority hosts. Within the same neighborhood, hosts from minority groups charge 3.2 percent 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 of potential guests about hosts’ average group quality. (JEL D83, J15, L84)
2017 ◽
Vol 62
(8)
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pp. 879-887
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2005 ◽
Vol 95
(3)
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pp. 496-501
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2020 ◽
Vol 50
(7)
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pp. 1077-1089
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2016 ◽
Vol 71
(5)
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pp. 453-460
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Keyword(s):
2021 ◽
2017 ◽
Vol 79
(1)
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pp. 101-111
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Keyword(s):
Keyword(s):