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Ride with me: Ethnic discrimination in social markets

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  • Tjaden, Jasper Dag
  • Schwemmer, Carsten
  • Khadjavi, Menusch

Abstract

We study ethnic discrimination in Europe's largest carpooling marketplace. Using a unique dataset with more than 17,000 rides, we estimate the effects of drivers' perceived name origins on the demand for rides. Carpooling is a novel application for studying ethnic discrimination where consumer choice entails social interaction with the service provider (i.e. driver). We find large discrimination effects for drivers with Arab, Turkish or Persian sounding names. Further analyses support assumptions consistent with statistical discrimination. Our findings broaden the perspective of ethnic discrimination by shedding light on subtle, everyday forms of discrimination in social markets and fuel ongoing discussions about anti-discrimination efforts in an era in which markets increasingly move online.

Suggested Citation

  • Tjaden, Jasper Dag & Schwemmer, Carsten & Khadjavi, Menusch, 2017. "Ride with me: Ethnic discrimination in social markets," Kiel Working Papers 2087, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:2087
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    References listed on IDEAS

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    Cited by:

    1. Simonovits, Gábor & Simonovits, Bori, 2022. "Csökkenthető-e a diszkrimináció a megosztáson alapuló gazdaságban? Egy magyarországi telekocsioldalon végzett kísérleti kutatás eredményei [Can discrimination be decreased in the new platform econo," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1457-1474.

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    Keywords

    ethnic discrimination; statistical discrimination; taste-based discrimination; online markets; computational social science;
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