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Competing for opportunity: Transport infrastructures and localized unemployment

Author

Listed:
  • Guillaume Chapelle

    (THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université, LIEPP - Laboratoire interdisciplinaire d'évaluation des politiques publiques (Sciences Po) - Sciences Po - Sciences Po)

  • Morgan Ubeda

    (CESAER - Centre d'économie et de sociologie rurales appliquées à l'agriculture et aux espaces ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

Unemployment rates vary significantly across neighborhoods and worker types, yet the role of transport infrastructures in explaining these disparities remains unexplored. We propose a quantitative urban model with frictional unemployment and heterogeneous workers where better connections between neighborhoods might exacerbate unemployment disparities due to competition among workers. We document this phenomenon using a difference-indifferences to estimate the impact of the creation of the Paris Regional Express Rail (RER). We find that the project increased the unemployment rate of low-skilled workers, but not of their high-skilled counterparts. In Paris, differences in job market access reduce unemployment inequalities between college graduates and the rest of the population.

Suggested Citation

  • Guillaume Chapelle & Morgan Ubeda, 2025. "Competing for opportunity: Transport infrastructures and localized unemployment," SciencePo Working papers Main hal-04963164, HAL.
    • Handle: RePEc:hal:spmain:hal-04963164
    Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-04963164v1
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