Small Pictures, Big Biases: The Adverse Effect of an Airbnb Anti-Discrimination Policy

20

MARCH 2025

12:30

Using scraped data from Airbnb's platform in New York City alongside state-of-the-art Vision Transformer models for image classification, this paper investigates the existence and extent of race discrimination in the Airbnb platform and the impact of a policy to reduce this bias. First, we show that Black hosts have a 7.2 percentage points lower occupancy rate than their White counterparts despite no differences in pricing. For Asian and Hispanic hosts, the difference compared to White hosts is small and largely insignificant for both occupancy rates and prices. Second, using difference-in-differences and event-study approaches, we show that the 2018 Airbnb anti-discrimination policy, which reduced the size of users' profile pictures on the platform, unexpectedly increased the Black-White disparity by about 3.3 percentage points. As a reaction to the adverse impact of the new policy, Black hosts increased the number of amenities in their listings. A potential mechanism for the increase in Black-White disparity stems from the increasing guests' uncertainty in discerning facial features that positively correlate with occupancy rates from the smaller profile pictures. As a result, guests focus more on skin color.

Scholars and the machine: on automation and academic performance

 

27

FEBRUARY 2025

12:30

A central question in economics is whether technological innovations complement or substitute workers’ skills, thus enhancing or replacing workers’ productivity. However, occupational output is often hard to measure, especially for high-skilled workers performing abstract tasks, making it hard to answer this question. In this paper, we focus on the effect of technology on productivity and inequality within a specific high-skilled group, that of researchers in economics, for whom we measure research output. Specifically, we study the effect of the introduction of DYNARE, a software designed to solve and simulate dynamic stochastic general equilibrium (DSGE) models. We first develop a dynamic model of research and citation accumulation, in which the arrival of the technology allows some researchers to perform more easily a subset of the tasks needed to write aca- demic papers. Next, we test the model’s implications by leveraging quasi-experimental variation in DYNARE adoption across fields. We implement a difference-in-differences strategy, finding a significant increase in the average number of publications. Consistent with the predictions of the model, the increase in publication is driven by less productive scholars, thus suggesting that the new technology could have led to a decrease in citation inequality.

Judging the paper by its cover: affiliation bias in conference admissions

16

JANUARY 2025

12:30

This paper tests how academic affiliation affects conference acceptance. Using a field experiment in an economics workshop, we find that disclosing affiliation biases reviewers in favor of authors from prestigious institutions. This bias, driven by in-group favoritism, suggests that affiliation bias may reinforce inequalities and limit academic diversity.

Innovative Approaches to Bank Default Prediction: The Integration of ESG Factors and Machine Learning

30

OCTOBER 2024

12:30

This study examines the role of ESG indicators in predicting financial distress in 362 US and EU-28 commercial banks (2012-2019). It finds that ESG factors improve the accuracy of distress prediction and reduce misclassification of troubled banks. The model, using statistical, machine learning, and ensemble methods, offers practical insights for banking supervisors and contributes to default prediction research.

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