Discrimination in the market for short term rentals: evidence from Airbnb
Date
2021-08-24
Authors
Fairley, Katherine M.
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Abstract
Discrimination against people of colour in the hospitality, labour, and housing markets has been causing harm throughout the history of the United States. Examining the discrepancy in outcomes for marginalized Airbnb hosts allows me to assess whether even those considered economically successful are harmed by racial and gender bias. Using an Ordinary Least Squares and a Propensity Score Matching approach, I find Airbnb hosts who are of Asian or Hispanic origin face both price and quantity penalties, having nightly prices on average 4% lower and receiving 3 percentage points fewer booked nights in a month than listings managed by white hosts. Black Airbnb hosts face higher nightly prices and a lower quantity of bookings; however, without holding neighbourhood constant, they charge approximately 12% less per night, indicating that Black hosts disproportionately own properties in low-price neighbourhoods. I also observe an intersectionaldiscrimination penalty wherein women of colour face even higher price and quantity penalties.
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Discrimination, Economics, Airbnb