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Highways, Market Access, and Spatial Sorting

Stephan Fretz, Raphaël Parchet () and Frederic Robert-Nicoud

No 12437, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: We design a spatial model featuring workers embodied with heterogeneous skills. In equilibrium, locations with improved market access become relatively more attractive to the high-skilled, high-income earners. We then empirically analyze the effects of the construction of the Swiss highway network between 1960 and 2010 on the distribution of income at the local level, as well as on employment and commuting by education level. We find that the advent of a new highway access within 10km led to a long-term 19%-increase of the share of high-income taxpayers and a 6%-decrease of the share of low-income taxpayers. Results are similar for employment data decomposed by education level, as well as for in- and out-commuters. Highways also contributed to job and residential urban sprawl.

Keywords: Highway; Income sorting.; market access; Transportation (search for similar items in EconPapers)
JEL-codes: D31 H54 O18 R11 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eur, nep-geo, nep-tre and nep-ure
Date: 2017-11
References: View references in EconPapers View complete reference list from CitEc
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Working Paper: Highways, Market Access and Spatial Sorting (2017) Downloads
Working Paper: Highways, Market Access, and Spatial Sorting (2017) Downloads
Working Paper: Highways, market access and spatial sorting (2017) Downloads
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