The Labor Market Impacts of the Transport System – A Proposal for an Evaluation Framework

The labor market impacts of transport system, as well as other so-called wider economic benefits, are debated widely. The discussion revolves around the question whether the transport appraisal frameworks capture all pertinent economic benefits. In this brief, we discuss how changes in accessibility caused by changes in the transport system affect the labor market and how to incorporate these effects to the transport appraisal framework. International research shows that traditional cost-benefit analysis largely captures the labor market impacts of transport system changes. However, there may still exist some wider economic impacts, including labor market impacts, that should be incorporated to the appraisals. The appraisal of the labor market impacts of transport system should be developed to provide research-based evaluations of the magnitude and incidence of the labor market impacts. We propose a four-level framework to assess the impacts of transport infrastructure changes on the labor market. Comprehensive appraisal demands the development of a nationwide transportation model and empirical research using Finnish individual level panel data with detailed geographical information.