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Ride with Me - Ethnic Discrimination, Social Markets and the Sharing Economy

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  • Tjaden, Jasper
  • Schwemmer, Carsten
  • Khadjavi, Menusch

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.

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  • Tjaden, Jasper & Schwemmer, Carsten & Khadjavi, Menusch, 2018. "Ride with Me - Ethnic Discrimination, Social Markets and the Sharing Economy," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181507, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc18:181507
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    3. Kas, Judith & Delnoij, Joyce & Corten, Rense & Parigi, Paolo, 2022. "Trust spillovers in the sharing economy: Does international Airbnb experience foster cross‐national trust?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 21(3), pages 509-522.
    4. Thijssen, Lex & Lancee, Bram & Veit, Susanne & Yemane, Ruta, 2021. "Discrimination against Turkish minorities in Germany and the Netherlands: field experimental evidence on the effect of diagnostic information on labour market outcomes," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 47(6), pages 1222-1239.
    5. Nikoloz Kudashvili & Philipp Lergetporer, 2019. "Do Minorities Misrepresent Their Ethnicity to Avoid Discrimination?," CERGE-EI Working Papers wp644, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    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.
    7. Carlos Gomez-Gonzalez & Cornel Nesseler & Helmut M. Dietl, 2021. "Mapping discrimination in Europe through a field experiment in amateur sport," Palgrave Communications, Palgrave Macmillan, vol. 8(1), pages 1-8, December.
    8. Sander WAGNER & Ivaylo D. PETEV, 2019. "The Economic Penalty of Terrorism: Increase in Discrimination Against Arabs and Muslims after Paris Attacks," Working Papers 2019-22, Center for Research in Economics and Statistics.
    9. 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.
    10. Lange, Andreas & Miniesy, Rania & Nicklisch, Andreas & Rabie, Dina & Bock, Olaf & Ross, Johannes, 2023. "Sharing norms and negotiations across cultures: Experimental interactions within and between Egypt and Germany," Journal of Economic Behavior & Organization, Elsevier, vol. 210(C), pages 412-440.
    11. Liu, Jianxiao & Gu, Hengyu & Zhou, Lin & Zhang, Hongmou & Wang, Luyao & Yu, Yue & Liu, Zhewei, 2024. "Resilience and recovery: Evaluating COVID pandemic effects on ride-hailing mobility and driver income dynamics," Journal of Transport Geography, Elsevier, vol. 117(C).
    12. Kas, Judith, 2022. "The effect of online reputation systems on intergroup inequality," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 96(C).
    13. Kudashvili, Nikoloz & Lergetporer, Philipp, 2022. "Minorities’ strategic response to discrimination: Experimental evidence," Journal of Public Economics, Elsevier, vol. 208(C).
    14. Zuzana Soltysova & Vladimir Modrak, 2020. "Challenges of the Sharing Economy for SMEs: A Literature Review," Sustainability, MDPI, vol. 12(16), pages 1-14, August.
    15. van der Cruijsen, Carin & Doll, Maurice & van Hoenselaar, Frank, 2019. "Trust in other people and the usage of peer platform markets," Journal of Economic Behavior & Organization, Elsevier, vol. 166(C), pages 751-766.
    16. Marc Helbling & Rahsaan Maxwell & Simon Munzert & Richard Traunmüller, 2022. "The importance of citizenship for deserving COVID-19 treatment," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-8, December.
    17. Carol, Sarah & Kuipers, Coco & Koesling, Philipp & Kaspers, Milan, 2021. "Ethnic and Religious Discrimination in the Wedding Venue Business: Evidence from Two Field Experiments in Germany and Austria," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Advance A, pages 1-1.
    18. Przepiorka, Wojtek, 2022. "Testing sociological theories with digital trace data from online markets," SocArXiv ed2xc, Center for Open Science.
    19. Kas, Judith, 2022. "The effect of online reputation systems on intergroup inequality," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 96, pages 1-1.

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    Keywords

    Ethnic discrimination; sharing economy; statistical discrimination; online markets; computational social science;
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