The Impact of Home-Sharing Self-Regulations on Crime Rates

The rise of the sharing economy has transformed traditional industries and brought about significant societal changes, prompting ongoing policy debates about regulation. Our recent research investigates the effects of platform self-regulations within the home-sharing market, particularly focusing on Airbnb.

Key Findings: Crime Rate Reduction through Self-Regulation

We analyzed the effects of policy changes that reduce the number of Airbnb listings using a difference-in-difference approach. Our findings indicate that such self-regulations lead to a reduction in overall crime rates. Notably, incidents of assault, robbery, and burglary decreased, although theft incidents saw an increase.

Neighborhood Variations: Socioeconomic Moderators

To understand how these effects vary across different neighborhoods, we employed geographically weighted regression. Our analysis revealed that socioeconomic factors like income, housing prices, and population density significantly moderate the impact of Airbnb occupancy on crime rates. This highlights the importance of local context in evaluating the outcomes of platform self-regulations.

Policy Implications and the Sharing Economy

Our research provides empirical evidence on the societal impacts of the sharing economy and the role of platform self-regulation. By showing how reducing home-sharing listings can influence crime rates, and how these effects differ across neighborhoods, our findings offer valuable insights for policymakers. These insights can help shape regulations that promote both the benefits of the sharing economy and community safety.

The full paper can be found here.