IDEAS home Printed from https://ideas.repec.org/a/ags/jrapmc/339971.html
   My bibliography  Save this article

Transit-induced Agglomeration and Employment Opportunity: A Spatial Econometric Analysis of Skill- and Industry-specific Job Clusters in Philadelphia, PA

Author

Listed:
  • Oh, Seunghoon
  • Hofe, Rainer vom

Abstract

The impacts of transit improvements on agglomeration economies have been studied repeatedly in regional science and urban planning. However, none of the studies focus specifically on the effect agglomeration associated with transit has on socially and economically disadvantaged groups. To fill this gap, this study primarily sheds light on the issue of low-skilled labor force’s opportunities related to transit-induced economic development. More specifically, we investigate the heterogeneous impacts of transit-induced agglomeration on job opportunities for employees with different skill levels and in different service sectors in Philadelphia, PA. For this study, we chose Location Quotients (LQ) to measure first skill- and then industry-specific agglomeration. We estimate spatial econometric models to analyze direct and spillover impacts of transit-induced agglomeration on job opportunities for low- and high-skilled jobs and different industries. Our results show that transit-induced agglomeration has a negative direct effect on low-skilled jobs, and a positive direct effect on high-skilled jobs. These results imply that the economic development revitalization strategy heavily favored high-tech and knowledge-based firms leading to a concentration of high-skilled workers and an underrepresentation of low-skilled workers in the urban core areas. This suggests less accessibility to job opportunities for transit-dependent low-skilled workers. The presence of positive spatial spillover effects of low-skilled workers further indicates that the concentration of economic activities around transit stations absorbs economic resources from neighboring areas. Overall, the revitalization projects have caused uneven and inconsistent local economic conditions across the entire metropolitan area.

Suggested Citation

  • Oh, Seunghoon & Hofe, Rainer vom, 2023. "Transit-induced Agglomeration and Employment Opportunity: A Spatial Econometric Analysis of Skill- and Industry-specific Job Clusters in Philadelphia, PA," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(1), May.
    • Handle: RePEc:ags:jrapmc:339971
    DOI: 10.22004/ag.econ.339971
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/339971/files/Oh.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.339971?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alan Wiig, 2019. "Incentivized Urbanization in Philadelphia: The Local Politics of Globalized Zones," Journal of Urban Technology, Taylor & Francis Journals, vol. 26(3), pages 111-129, July.
    2. Merlin, Louis A. & Hu, Lingqian, 2017. "Does competition matter in measures of job accessibility? Explaining employment in Los Angeles," Journal of Transport Geography, Elsevier, vol. 64(C), pages 77-88.
    3. McCann, Philip, 2001. "Urban and Regional Economics," OUP Catalogue, Oxford University Press, number 9780198776451.
    4. Andrea Fracasso & Giuseppe Vittucci Marzetti, 2018. "Estimating dynamic localization economies: the inadvertent success of the specialization index and the location quotient," Regional Studies, Taylor & Francis Journals, vol. 52(1), pages 119-132, January.
    5. Yu, Haitao & Jiao, Junfeng & Houston, Eric & Peng, Zhong-Ren, 2018. "Evaluating the relationship between rail transit and industrial agglomeration: An observation from the Dallas-fort worth region, TX," Journal of Transport Geography, Elsevier, vol. 67(C), pages 33-52.
    6. Iseki, Hiroyuki & Taylor, Brian D., 2010. "The Demographics of Public Transit Subsidies: A Case Study of Los Angeles," University of California Transportation Center, Working Papers qt9nq526f1, University of California Transportation Center.
    7. Ong, Paul M. & Houston, Douglas, 2002. "Transit, Employment and Women on Welfare," University of California Transportation Center, Working Papers qt3287s046, University of California Transportation Center.
    8. Sari Pekkala Kerr & William Kerr & Çağlar Özden & Christopher Parsons, 2017. "High-Skilled Migration and Agglomeration," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 201-234, September.
    9. Kevin Credit, 2019. "Transitive properties: a spatial econometric analysis of new business creation around transit," Spatial Economic Analysis, Taylor & Francis Journals, vol. 14(1), pages 26-52, January.
    10. Lindley, Joanne & Machin, Stephen, 2014. "Spatial changes in labour market inequality," Journal of Urban Economics, Elsevier, vol. 79(C), pages 121-138.
    11. John F. Kain, 1968. "Housing Segregation, Negro Employment, and Metropolitan Decentralization," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(2), pages 175-197.
    12. Jomehpour Chahar Aman, Javad & Smith-Colin, Janille, 2020. "Transit Deserts: Equity analysis of public transit accessibility," Journal of Transport Geography, Elsevier, vol. 89(C).
    13. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    14. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    15. repec:zbw:bofrdp:2017_007 is not listed on IDEAS
    16. Daniel Chatman & Robert Noland, 2011. "Do Public Transport Improvements Increase Agglomeration Economies? A Review of Literature and an Agenda for Research," Transport Reviews, Taylor & Francis Journals, vol. 31(6), pages 725-742.
    17. Daniel G. Chatman & Robert B. Noland, 2014. "Transit Service, Physical Agglomeration and Productivity in US Metropolitan Areas," Urban Studies, Urban Studies Journal Limited, vol. 51(5), pages 917-937, April.
    18. Daniel J. Graham, 2007. "Agglomeration, Productivity and Transport Investment," Journal of Transport Economics and Policy, University of Bath, vol. 41(3), pages 317-343, September.
    19. James P. LeSage, 2014. "What Regional Scientists Need to Know about Spatial Econometrics," The Review of Regional Studies, Southern Regional Science Association, vol. 44(1), pages 13-32, Spring.
    20. Mejia-Dorantes, Lucia & Paez, Antonio & Vassallo, Jose Manuel, 2012. "Transportation infrastructure impacts on firm location: the effect of a new metro line in the suburbs of Madrid," Journal of Transport Geography, Elsevier, vol. 22(C), pages 236-250.
    21. Virginia Parks, 2004. "Access to Work: The Effects of Spatial and Social Accessibility on Unemployment for Native-Born Black and Immigrant Women in Los Angeles," Economic Geography, Taylor & Francis Journals, vol. 80(2), pages 141-172, April.
    22. Jessica Ferm, 2016. "Preventing the displacement of small businesses through commercial gentrification: are affordable workspace policies the solution?," Planning Practice & Research, Taylor & Francis Journals, vol. 31(4), pages 402-419, August.
    23. Eun Jin Shin, 2020. "Disparities in access to opportunities across neighborhoods types: a case study from the Los Angeles region," Transportation, Springer, vol. 47(2), pages 475-501, April.
    24. Glaeser, Edward L. & Kahn, Matthew E. & Rappaport, Jordan, 2008. "Why do the poor live in cities The role of public transportation," Journal of Urban Economics, Elsevier, vol. 63(1), pages 1-24, January.
    25. Cathy Yang Liu & Eric Joseph van Holm, 2019. "The Geography of Occupational Concentration Among Low-Skilled Immigrants," Economic Development Quarterly, , vol. 33(2), pages 107-120, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oh, Seunghoon & Chen, Na, 2022. "Do public transit and agglomeration economies collectively enhance low-skilled job accessibility in Portland, OR?," Transport Policy, Elsevier, vol. 115(C), pages 209-219.
    2. Yan, Xiang & Bejleri, Ilir & Zhai, Liang, 2022. "A spatiotemporal analysis of transit accessibility to low-wage jobs in Miami-Dade County," Journal of Transport Geography, Elsevier, vol. 98(C).
    3. Champagne, Marie-Pier & Dubé, Jean, 2023. "The impact of transport infrastructure on firms’ location decision: A meta-analysis based on a systematic literature review," Transport Policy, Elsevier, vol. 131(C), pages 139-155.
    4. Yu, Haitao & Jiao, Junfeng & Houston, Eric & Peng, Zhong-Ren, 2018. "Evaluating the relationship between rail transit and industrial agglomeration: An observation from the Dallas-fort worth region, TX," Journal of Transport Geography, Elsevier, vol. 67(C), pages 33-52.
    5. Gibbons, Steve & Overman, Henry G. & Patacchini, Eleonora, 2015. "Spatial Methods," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 115-168, Elsevier.
    6. Valerien O. Pede & Raymond J. G. M. Florax & Henri L. F. de Groot & Gustavo Barboza, 2021. "Technological leadership and sectorial employment growth: A spatial econometric analysis for U.S. counties," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 50(1), February.
    7. Ferhan Gezici & Burçin Yazgı & Sinem Metin, 2013. "Analyzing the determinants of agglomeration for the manufacturing industry in Turkey," ERSA conference papers ersa13p808, European Regional Science Association.
    8. Hamidi, Shima & Zandiatashbar, Ahoura & Bonakdar, Ahmad, 2019. "The relationship between regional compactness and regional innovation capacity (RIC): Empirical evidence from a national study," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 394-402.
    9. Qin, Quande & Yu, Ying & Liu, Yuan & Zhou, Jianqing & Chen, Xiude, 2023. "Industrial agglomeration and energy efficiency: A new perspective from market integration," Energy Policy, Elsevier, vol. 183(C).
    10. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    11. Konno, Akio & Kato, Hironori & Takeuchi, Wataru & Kiguchi, Riku, 2021. "Global evidence on productivity effects of road infrastructure incorporating spatial spillover effects," Transport Policy, Elsevier, vol. 103(C), pages 167-182.
    12. Fan, Yingling & Guthrie, Andrew E & Levinson, David M, 2012. "Impact of light rail implementation on labor market accessibility: A transportation equity perspective," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 5(3), pages 28-39.
    13. Edward L. Glaeser, 2012. "Urban Public Finance," NBER Working Papers 18244, National Bureau of Economic Research, Inc.
    14. Kim, Junghwan & Lee, Bumsoo, 2019. "More than travel time: New accessibility index capturing the connectivity of transit services," Journal of Transport Geography, Elsevier, vol. 78(C), pages 8-18.
    15. Allen, Jeff & Farber, Steven, 2019. "Sizing up transport poverty: A national scale accounting of low-income households suffering from inaccessibility in Canada, and what to do about it," Transport Policy, Elsevier, vol. 74(C), pages 214-223.
    16. Daniela Schettini & Carlos R. Azzoni & Antonio Paez, 2011. "Neighborhood and Efficiency in Manufacturing in Brazilian Regions," International Regional Science Review, , vol. 34(4), pages 397-418, October.
    17. Adriana Ruiz & Anna Matas & Josep Lluís Raymond, 2016. "How do road infrastructure investments affect the regional economy? Evidence from Spain," Working Papers XREAP2016-09, Xarxa de Referència en Economia Aplicada (XREAP), revised Dec 2016.
    18. Ferhan Gezici & Burçin Yazgı Walsh & Sinem Metin Kacar, 2017. "Regional and structural analysis of the manufacturing industry in Turkey," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 209-230, July.
    19. Åslund, Olof & Blind, Ina & Dahlberg, Matz, 2017. "All aboard? Commuter train access and labor market outcomes," Regional Science and Urban Economics, Elsevier, vol. 67(C), pages 90-107.
    20. repec:hal:spmain:info:hdl:2441/1kv8mtgl748r0ahh12air9erdc is not listed on IDEAS
    21. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, vol. 47(4), pages 983-1028, December.

    More about this item

    Keywords

    Labor and Human Capital;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jrapmc:339971. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/mcrsaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.