Can Information Reduce Ethnic Discrimination? Evidence from Airbnb

@article{Laounan2022CanIR,
  title={Can Information Reduce Ethnic Discrimination? Evidence from Airbnb},
  author={Morgane Laou{\'e}nan and Roland Rathelot},
  journal={American Economic Journal: Applied Economics},
  year={2022}
}
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… 

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