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Too far to go to work? Examining the effect of changes in the time taken to commute on regional unemployment

Author

Listed:
  • Ales Franc

    (Department of Economics, Faculty of Business and Economics, Mendel University in Brno, Czech Republic)

  • Sona Kukuckova

    (Department of Finance, Faculty of Business and Economics, Mendel University in Brno, Czech Republic)

  • Marek Litzman

    (Department of Economics, Faculty of Business and Economics, Mendel University in Brno, Czech Republic)

Abstract

Time spent commuting plays a significant role in decision-making within the labour market, particularly for job seekers. Investments in road infrastructure have a direct effect on commuting times and thus may also have an effect on the local labour markets. The aim of the article is to evaluate the effect of improvements in infrastructure on regional unemployment. In this paper, we use a unique database that includes data on the time taken to commute from all municipalities in the Czech Republic (n=6237) to their regional centres for every month between March 2014 and December 2022 (106 periods). Overall 1534 changes that met the criteria for a significant change in travelling time were identified. Our results suggest that a one-minute drop in commuting time from the respective municipality to the regional centre is linked to a 0.07 percentage point drop in the unemployment rate one year later, in comparison to the control group. The ratio rises over time, after five years, the same one-minute reduction in commuting time, is then related to a 0.19 percentage point drop in unemployment. Therefore, better infrastructure can help to reduce differences in regional rates of unemployment and can justify infrastructure investments.

Suggested Citation

  • Ales Franc & Sona Kukuckova & Marek Litzman, 2024. "Too far to go to work? Examining the effect of changes in the time taken to commute on regional unemployment," MENDELU Working Papers in Business and Economics 2024-94, Mendel University in Brno, Faculty of Business and Economics.
    • Handle: RePEc:men:wpaper:94_2024
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    More about this item

    Keywords

    commuting; unemployment; road infrastructure; OSRM; New Economic Geography; inter-regional disparities; regional development;
    All these keywords.

    JEL classification:

    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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