Local employment dynamics and communtig costs

Julien Pascal

No 167, BCL working papers from Central Bank of Luxembourg

Abstract: I explore the links between commuting costs and local employment dynamics using a spatial discontinuity introduced by a French reform in September 2015. The reform decreased the cost of public transportation in selected areas of the Paris region, but did not affect other areas. In the baseline regression framework, which only includes units that are geographically close to each other, I find that areas benefiting from the reform experienced a 0:25 percentage point decline in the unemployment rate, a 0.60 percentage point increase in the share of employed workers commuting using public transport, and a 1.4% increase in the price of residential real estate. I extend the regression framework to take into account the heterogeneity of treatment introduced by the reform, which allows me to analyze the mechanisms driving the results. I also show that a calibrated spatial search-and-matching model can rationalize the estimated treatment effects.

Keywords: Local employment; Commuting Costs; Policy; Search-and-Matching (search for similar items in EconPapers)
JEL-codes: E24 J68 R13 R23 (search for similar items in EconPapers)
Pages: 57 pages
Date: 2022-10
New Economics Papers: this item is included in nep-dge, nep-eur, nep-geo, nep-lab, nep-tre and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:bcl:bclwop:bclwp167

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