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The impact of accessibility on labor earnings

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Abstract

We estimate the impact of job accessibility on wage earnings using micro-level data including all workers in the greater Stockholm region at two points in time 11 years apart. We control for both zone-specific and individual-specific fixed effects by separating workers who have changed zone of residence and those who have stayed. The accessibility is derived from the national transport model, taking into account consumer behavior and preferences for all travel modes and travel time components. A novel instrumental variable based on the temporal changes in job accessibility resulting from transport system improvements over the 11 years is applied. The elasticity of accessibility defined from the worker’s place of residence is estimated at 0.007. The elasticity of wage earnings with respect to job accessibility at the work place is only significant for workers moving work place and for those estimated at 0.036.

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  • Isacsson, Gunnar & Börjesson, Maria & Andersson, Matts & Anderstig, Christer, 2016. "The impact of accessibility on labor earnings," Working papers in Transport Economics 2015:18, CTS - Centre for Transport Studies Stockholm (KTH and VTI).
    • Handle: RePEc:hhs:ctswps:2015_018
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    File URL: http://www.transportportal.se/swopec/CTS2015-18.pdf
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    More about this item

    Keywords

    Cost-Benefit Analysis; Accessibility; Agglomeration effects; Wider Economic Benefits;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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