Gender earning gap on digital platforms: The Airbnb case

Abstract

Contrary to initial expectations derived from traditional labor market theories, which predicted digital platforms would narrow the gender earnings gap, recent studies suggest this gap remains persistent. This research focuses on Airbnb, where trust and hospitality, often perceived as favoring female hosts, play a critical role. Using data from Airbnb in Tel-Aviv and supported by experimental evidence, we find a surprising result: the gender earnings gap is not merely reduced on Airbnb but is reversed, with female hosts earning more than their male counterparts. This reversal is attributed to the market mechanism of Airbnb, combined with a guest preference for female hosts. These findings offer a crucial insight: the influence of information and communication technology (ICT) on women’s empowerment is not straightforward or universal. Instead, it is influenced by the specific characteristics and mechanisms of each digital platform.