Abstract:
We study ethnic discrimination in the sharing economy using the example of Europe’s largest carpooling marketplace. Based on a unique dataset with more than 17,000 rides, we estimate the effects of drivers’ perceived name origins on the demand for rides. The results show sizable ethnic penalties. Further analyses suggest that additional information about actors in this market decreases the magnitude of ethnic discrimination. Our findings broaden the perspective of ethnic discrimination by shedding light on subtle, everyday forms of discrimination in social markets and informing ongoing discussions about ways to address discrimination in an era in which markets increasingly move online.
