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Racial discrimination in transportation network companies

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Listed:
  • Ge, Yanbo
  • Knittel, Christopher R.
  • MacKenzie, Don
  • Zoepf, Stephen

Abstract

In a randomized audit study, we sent passengers in Boston, MA on nearly 1000 rides on controlled routes using the Uber and Lyft smartphone apps, recording key performance metrics. Passengers randomly selected between accounts that used African American-sounding and white-sounding names. We find that the probability an Uber driver accepts a ride, sees the name, and then cancels doubles when passengers used the account attached to the African American-sounding name. In contrast, Lyft drivers observe the name before accepting a ride and, as expected, we find no effect of name on cancellations. We do not, however, find that the increase in cancellations leads to measurably longer wait times for Uber.

Suggested Citation

  • Ge, Yanbo & Knittel, Christopher R. & MacKenzie, Don & Zoepf, Stephen, 2020. "Racial discrimination in transportation network companies," Journal of Public Economics, Elsevier, vol. 190(C).
    • Handle: RePEc:eee:pubeco:v:190:y:2020:i:c:s0047272720300694
    DOI: 10.1016/j.jpubeco.2020.104205
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    References listed on IDEAS

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    1. M. Keith Chen & Judith A. Chevalier & Peter E. Rossi & Emily Oehlsen, 2019. "The Value of Flexible Work: Evidence from Uber Drivers," Journal of Political Economy, University of Chicago Press, vol. 127(6), pages 2735-2794.
    2. Ian Ayres & Mahzarin Banaji & Christine Jolls, 2015. "Race effects on eBay," RAND Journal of Economics, RAND Corporation, vol. 46(4), pages 891-917, October.
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    7. Benjamin Edelman & Micahel Luca, 2014. "Digital Discrimination: The Case of Airbnb.com," Harvard Business School Working Papers 14-054, Harvard Business School.
    8. Yanbo Ge & Christopher R. Knittel & Don MacKenzie & Stephen Zoepf, 2016. "Racial and Gender Discrimination in Transportation Network Companies," NBER Working Papers 22776, National Bureau of Economic Research, Inc.
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    Cited by:

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    4. Agrawal, David R. & Zhao, Weihua, 2023. "Taxing Uber," Journal of Public Economics, Elsevier, vol. 221(C).
    5. Robert Dur & Carlos Gomez-Gonzalez & Cornel Nesseler, 2022. "How to reduce discrimination? Evidence from a field experiment in amateur soccer," Tinbergen Institute Discussion Papers 22-005/VII, Tinbergen Institute.
    6. Olga Abramova, 2022. "No matter what the name, we’re all the same? Examining ethnic online discrimination in ridesharing marketplaces," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1419-1446, September.
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    8. Rick Grahn & Sean Qian & Chris Hendrickson, 2023. "Optimizing first- and last-mile public transit services leveraging transportation network companies (TNC)," Transportation, Springer, vol. 50(5), pages 2049-2076, October.
    9. Shaw, Caroline & Tiatia-Seath, Jemaima, 2022. "Travel inequities experienced by Pacific peoples in Aotearoa/New Zealand," Journal of Transport Geography, Elsevier, vol. 99(C).

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    More about this item

    Keywords

    Discrimination; Audit study; Field experiment; Transportation network company; Peer economy; Sharing economy;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • L90 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - General
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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