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Can Information Reduce Ethnic Discrimination? Evidence from Airbnb

Author

Listed:
  • Morgane Laouénan

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po)

  • Roland Rathelot

    (ENSAE - Ecole Nationale de la Statistique et de l'Analyse Economique - Ecole Nationale de la Statistique et de l'Analyse Economique, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - Groupe ENSAE-ENSAI - Groupe des Écoles Nationales d'Économie et Statistique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique)

Abstract

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.

Suggested Citation

  • Morgane Laouénan & Roland Rathelot, 2022. "Can Information Reduce Ethnic Discrimination? Evidence from Airbnb," Sciences Po Economics Publications (main) hal-03930675, HAL.
    • Handle: RePEc:hal:spmain:hal-03930675
    DOI: 10.1257/app.20190188
    Note: View the original document on HAL open archive server: https://hal.science/hal-03930675v1
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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.
    2. Alsan, Marcella & Campbell, Romaine A. & Leister, Lukas & Ojo, Ayotomiwa, 2025. "Investigator racial diversity and clinical trial participation," Journal of Health Economics, Elsevier, vol. 100(C).
    3. Sekou Keita & Thomas Renault & Jérôme Valette, 2024. "The Usual Suspects: Offender Origin, Media Reporting and Natives’ Attitudes Towards Immigration," The Economic Journal, Royal Economic Society, vol. 134(657), pages 322-362.
    4. Liu, Tao & Yu, Yanxin & Gong, Di & Guo, Min, 2024. "Geographic disparities in bank lending: Evidence from an auto loan market," Pacific-Basin Finance Journal, Elsevier, vol. 88(C).
    5. Chen, Yutong, 2024. "Does the gig economy discriminate against women? Evidence from physicians in China," Journal of Development Economics, Elsevier, vol. 169(C).
    6. Mohammed, A.R. Shariq, 2025. "Designing for racial impartiality: The impact of relocating host photos on the Airbnb website," Journal of Economic Behavior & Organization, Elsevier, vol. 229(C).
    7. Lepinteur, Anthony & Menta, Giorgia & Waltl, Sofie R., 2025. "Equal price for equal place? Demand-driven racial discrimination in the housing market," Regional Science and Urban Economics, Elsevier, vol. 111(C).
    8. Brülhart, Marius & Klinke, Gian-Paolo & Marcucci, Andrea & Rohner, Dominic & Thoenig, Mathias, 2023. "Price and Prejudice: Housing Rents Reveal Racial Animus," CEPR Discussion Papers 18050, C.E.P.R. Discussion Papers.
    9. Boto-García, David & Balado-Naves, Roberto & Mayor, Matías & Baños-Pino, José Francisco, 2023. "Consumers' demand for operational licencing: evidence from Airbnb in Paris," Annals of Tourism Research, Elsevier, vol. 100(C).
    10. Morris, J., 2023. "The Impact of Qualitative Reviews on Racial Statistical Discrimination: Evidence from Airbnb," Cambridge Working Papers in Economics 2331, Faculty of Economics, University of Cambridge.
    11. Shagun Tripathi & Georgios Petropoulos & Harris Kyriakou, 2025. "Assessing the Impact of Algorithmic Quantity Regulations on Sharing Platforms: Evidence from Airbnb in Paris," CESifo Working Paper Series 11811, CESifo.
    12. Duncan, Denvil & Ross, Justin, 2025. "The effect of Airbnb on housing prices: Evidence from the 2017 solar eclipse," ZEW Discussion Papers 25-027, ZEW - Leibniz Centre for European Economic Research.
    13. Yang, Xiaoliang & Zhou, Peng, 2025. "Unveiling citation bias in economics: Taste-based discrimination against Chinese-authored papers," Labour Economics, Elsevier, vol. 94(C).

    More about this item

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services

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