Table 5.

Effect of yellow on the accident rate among drivers who drove both yellow and blue taxis using Aid=α0+βYellowid+α1Xid+Di+εid

VariablesParameter estimatesRobust standard error
Yellow–0.000204*(0.000063)
Driving experience in 10 y–0.002194(0.002217)
Age in 10 y0.002699(0.002204)
Relief driver–0.001133***(0.000242)
Driver fixed effectsYes
Observations934,875
R20.0018
  • The dependent variable Aid{0,1} is whether driver i had an accident on day d, the independent variables include whether driver i’s taxi was yellow on day d (Yellowid), the driver’s driving experience and age, whether the driver was a relief driver on that day, and the driver’s personal fixed effect dummies. The analysis is done at the daily level to account for drivers switching colors on any day of a month. The number of observations is based on 868 drivers who had active contracts with both yellow and blue taxis. In this specification, one observation is one driver's driving record on 1 d with one type of taxi; the per-day coefficients can be scaled by a factor of 365/12 to convert them to a per-month estimated level for easy comparison with values in the other tables. R2 is the coefficient of determination. ***P < 0.0001, *P < 0.01.

  • Regular drivers rent the taxis directly from the taxi company. These drivers are allowed to let “relief” drivers use their taxis as long as the relief drivers are on the approved list of drivers maintained by the company. On average, regular drivers work 11.5 h/d and relief drivers work 8.5 h/d.