Sharing Economy and Entrepreneurship

89 Pages Posted: 12 Feb 2018 Last revised: 26 Jan 2024

See all articles by Yifei Mao

Yifei Mao

Cornell University - SC Johnson College of Business - Finance Department

Xuan Tian

Tsinghua University - PBC School of Finance

Jiajie Xu

University of Iowa - Henry B. Tippie College of Business

Kailei Ye

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School

Date Written: January 1, 2024

Abstract

Our paper shows that Airbnb—a sharing economy pioneer—has led to the creation of new, local businesses, which have higher survival rates and better performance both at the creation and in the long-run. Airbnb appears to spur new business creations by increasing passive income for landlords and by boosting tourists spending in the local region, leading to higher local income and the creation of more jobs. Our empirical strategy exploits the staggered arrival of Airbnb across counties, an instrumental variable approach for Airbnb penetration, and a case study using the short-term rental restriction in New York.

Keywords: Airbnb, sharing economy, entrepreneurship, local demand, rental income, job creation

JEL Classification: L26, L85, L86, M13

Suggested Citation

Mao, Yifei and Tian, Xuan and Xu, Jiajie and Ye, Kailei, Sharing Economy and Entrepreneurship (January 1, 2024). Kenan Institute of Private Enterprise Research Paper No. 19-13, PBCSF-NIFR Research Paper, Available at SSRN: https://ssrn.com/abstract=3111975 or http://dx.doi.org/10.2139/ssrn.3111975

Yifei Mao (Contact Author)

Cornell University - SC Johnson College of Business - Finance Department ( email )

Ithaca, NY 14850
United States

Xuan Tian

Tsinghua University - PBC School of Finance ( email )

No. 43, Chengfu Road
Haidian District
Beijing 100083
China
+86-10-62794103 (Phone)

HOME PAGE: http://xuantian.info/

Jiajie Xu

University of Iowa - Henry B. Tippie College of Business ( email )

Pappajohn Business Building S296
Iowa City, IA 52242-1000
United States

HOME PAGE: http://www.jiajiexu.com/

Kailei Ye

University of North Carolina (UNC) at Chapel Hill - Kenan-Flagler Business School ( email )

McColl Building
Chapel Hill, NC 27599-3490
United States

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