Airbnb Hosts Discriminated Against Black Renters Based On Their Name
Researchers set up 6,400 fake profiles of Airbnb guests and assigned them stereotypically white or black names, based on Massachusetts birth certificate data from the 1970s. None of the guest profiles had identifying pictures. They used the accounts to request bookings with hosts in five cities: Baltimore, Dallas, Los Angeles, St. Louis, and Washington, D.C. Airbnb hosts decide whom they want to rent to; requests from white guests got “yes” responses 50 percent of the time, vs. 42 percent for black applicants. The researchers controlled for a variety of factors, such as the host’s gender and ratings, and the “race effect,” as the paper described it, persisted.
“Life is tough if you’re a black guest on Airbnb,” said Ben Edelman, an associate professor at HBS and one of the study’s authors. “Particularly when you compare it to the baseline of the way things used to be. If you’re a black guest, you just make a reservation at the Marriott.”
For its part, Airbnb says it doesn’t support discrimination. “Airbnb is one of the most open, trusted, diverse, transparent communities in the world,” a spokesperson said in a statement sent to Bloomberg. “We respond quickly to any concerns raised by hosts or guests, and we have a zero-tolerance policy for discrimination on our platform.”
The paper comes from the same researchers who in 2014 discovered racial discrimination against hosts. That study found nonblack renters could charge 12 percent more, on average, holding everything else constant. The differential in the new study is less stark, but still statistically significant, Edelman said. “Anything more than zero is something we should aspire to fix,” he said.
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