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Is it expensive to be poor? Public transport in Sweden

Author

Listed:
  • Anders Bondemark

    (The Swedish National Road and Transport Institute (VTI)
    Lund University
    The Swedish Knowledge Centre for Public Transport)

  • Henrik Andersson

    (University of Toulouse Capitole)

  • Anders Wretstrand

    (Lund University
    The Swedish Knowledge Centre for Public Transport)

  • Karin Brundell-Freij

    (Lund University
    The Swedish Knowledge Centre for Public Transport
    WSP Advisory)

Abstract

One of the reasons to subsidise public transport is to improve the mobility of low-income groups by providing affordable public transport; however, the literature describes a situation whereby those with a low income are unable to afford the cheapest tickets per trip, i.e. travelcards, as they usually require a considerable up-front cost. In this study, we use a large dataset from the Swedish National Travel Survey to investigate whether, and if so how, income explains monthly travelcard possession among individuals for whom this would have been the least expensive option. We find a robust positive relationship between income and travelcard possession among low-income earners, indicating that those with a low income pay more to use public transport than more affluent individuals. As the accessibility of low-income groups is an important motivation for public transport subsidies, the findings from this study have important policy implications.

Suggested Citation

  • Anders Bondemark & Henrik Andersson & Anders Wretstrand & Karin Brundell-Freij, 2021. "Is it expensive to be poor? Public transport in Sweden," Transportation, Springer, vol. 48(5), pages 2709-2734, October.
    • Handle: RePEc:kap:transp:v:48:y:2021:i:5:d:10.1007_s11116-020-10145-5
    DOI: 10.1007/s11116-020-10145-5
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    More about this item

    Keywords

    Fares; Public transport; Income; Liquidity constraints;
    All these keywords.

    JEL classification:

    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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