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High-speed rail and employment disparity: A sectoral perspective

Longfei Zheng, Shuping Wu, Anming Zhang and Zhengyi Zhou

Transportation Research Part A: Policy and Practice, 2026, vol. 209, issue C

Abstract: By reducing intercity transport costs, transportation infrastructure can reshape the spatial distribution of urban sectoral employment and affect regional disparity. This paper develops a theoretical model to illustrate the effects of high-speed rail (HSR) on employment disparity between core and peripheral cities, highlighting differences between the manufacturing and service sectors. The model’s predictions are supported by city-pair-level evidence. We empirically show that HSR connections significantly widen employment gaps between core and peripheral cities in the service sector, while slightly narrowing the gap in the manufacturing sector. Moreover, the effects on the service sector mainly stem from employment growth, whereas those on the manufacturing sector result from a redistribution of existing employment. The net effect on labor welfare depends on the relative strength of different forces.

Keywords: Transport infrastructure; Employment; Disparity; Manufacturing; Services (search for similar items in EconPapers)
JEL-codes: O18 O47 R12 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1016/j.tra.2026.105014

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