IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa13p1040.html
   My bibliography  Save this paper

Do public transport improvements increase employment and income in a city?

Author

Listed:
  • Carlos Augusto Olarte Bacares

Abstract

Previous researches have proved the existence of a causal relationship between the concentration of jobs in a city and the income of inhabitants. Other researchers have studied the close and even nearly causal relationship between those variables and the degree of accessibility or of infrastructures like highways on different zones of a city. Nevertheless, no one research has taken into account the degree to which each area of a city benefits from the latest improvements of public transports. The aim of this research is to analyze the relationship between the size of labor market, the income and the employment concentration on different zones of a city with respect to the degree of improvements of public transports (Transmilenio) in a city of a developing country like Bogota. The degree of enhancements of public transports in a zone is suspected to be endogenous to those three variables. Through the use of OLS estimations and then 2SLS estimations for each dependent variable (3), the validation of endogeneity gives enough tools to infer a positive or a negative causality of improvements of public transports. The size of companies defined by the number of jobs they offer plays a role of instrumental variable to explain the degree of improvement of public transports on each zone. It suggests three different scenarios that depend on the size of companies established on each zone. In essence, the number of jobs, the size of the labor market and the income are largely defined by the level of improvements of urban public transports on each zone of the city and the causality relationship changes depending on the size of companies established on each zone. Results of this empirical research give some robust evidences. In the case of Bogotá, public transports improvements have a causality relationship on the income of inhabitants on each zone and on the number of jobs and it change with respect to the size of enterprises. In contrast, the size of labor market, defined as the number of reachable jobs on a specific time, is not a cause of the degree of the presence of public transports' enhancements.

Suggested Citation

  • Carlos Augusto Olarte Bacares, 2013. "Do public transport improvements increase employment and income in a city?," ERSA conference papers ersa13p1040, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa13p1040
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa13/ERSA2013_paper_01040.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gérard Koenig, 1974. "Théorie économique de l'accessibilité urbaine," Revue Économique, Programme National Persée, vol. 25(2), pages 275-297.
    2. Attanasi, Giuseppe & Casoria, Fortuna & Centorrino, Samuele & Urso, Giulia, 2013. "Cultural investment, local development and instantaneous social capital: A case study of a gathering festival in the South of Italy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 47(C), pages 228-247.
    3. Patricia L. Mokhtarian & Michael N. Bagley, 2002. "The impact of residential neighborhood type on travel behavior: A structural equations modeling approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 36(2), pages 279-297.
    4. Ihlanfeldt, Keith R. & Sjoquist, David L., 1991. "The role of space in determining the occupations of black and white workers," Regional Science and Urban Economics, Elsevier, vol. 21(2), pages 295-315, July.
    5. Paul Krugman, 1997. "Development, Geography, and Economic Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 026261135x, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tobias Pfutze & Carlos Rodríguez-Castelán & Daniel Valderrama, 2023. "Urban transport infrastructure and household welfare: evidence from Colombia," Empirical Economics, Springer, vol. 65(3), pages 1409-1432, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carlos Augusto Olarte Bacares, 2014. "Are public transport improvements endogenous with respect to employment and income location in a city?," Post-Print halshs-00973398, HAL.
    2. Kamruzzaman, Md. & Baker, Douglas & Washington, Simon & Turrell, Gavin, 2013. "Residential dissonance and mode choice," Journal of Transport Geography, Elsevier, vol. 33(C), pages 12-28.
    3. Li, Jingjing & Kim, Changjoo & Sang, Sunhee, 2018. "Exploring impacts of land use characteristics in residential neighborhood and activity space on non-work travel behaviors," Journal of Transport Geography, Elsevier, vol. 70(C), pages 141-147.
    4. Van Acker, Veronique & Ho, Loan & Stevens, Larissa & Mulley, Corinne, 2020. "Quantifying the effects of childhood and previous residential experiences on the use of public transport," Journal of Transport Geography, Elsevier, vol. 86(C).
    5. Rolf Bergs, 2021. "Spatial dependence in the rank-size distribution of cities – weak but not negligible," PLOS ONE, Public Library of Science, vol. 16(2), pages 1-16, February.
    6. Verhetsel, Ann & Vanelslander, Thierry, 2010. "What location policy can bring to sustainable commuting: an empirical study in Brussels and Flanders, Belgium," Journal of Transport Geography, Elsevier, vol. 18(6), pages 691-701.
    7. Ding, Yu & Lu, Huapu, 2016. "Activity participation as a mediating variable to analyze the effect of land use on travel behavior: A structural equation modeling approach," Journal of Transport Geography, Elsevier, vol. 52(C), pages 23-28.
    8. Liu, Yan & Wang, Siqin & Xie, Bin, 2019. "Evaluating the effects of public transport fare policy change together with built and non-built environment features on ridership: The case in South East Queensland, Australia," Transport Policy, Elsevier, vol. 76(C), pages 78-89.
    9. Chetan Doddamani & M. Manoj, 2023. "Analysis of the influences of built environment measures on household car and motorcycle ownership decisions in Hubli-Dharwad cities," Transportation, Springer, vol. 50(1), pages 205-243, February.
    10. Mueller, Rolf A.E. & Buergelt, Doreen & Seidel-Lass, Linda, 2008. "Supply Chains and Social Network Analysis," 110th Seminar, February 18-22, 2008, Innsbruck-Igls, Austria 49883, European Association of Agricultural Economists.
    11. Scheiner, Joachim & Holz-Rau, Christian, 2013. "A comprehensive study of life course, cohort, and period effects on changes in travel mode use," Transportation Research Part A: Policy and Practice, Elsevier, vol. 47(C), pages 167-181.
    12. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    13. Scheiner, Joachim, 2010. "Social inequalities in travel behaviour: trip distances in the context of residential self-selection and lifestyles," Journal of Transport Geography, Elsevier, vol. 18(6), pages 679-690.
    14. Kajosaari, Anna & Hasanzadeh, Kamyar & Kyttä, Marketta, 2019. "Residential dissonance and walking for transport," Journal of Transport Geography, Elsevier, vol. 74(C), pages 134-144.
    15. Cyrille Genre-Grandpierre & Giovanni Fusco & Milos Balac & Francesco Ciari & Serigne Gueye & Cyril Sahuc & Philippe Michelon & Matteo Caglioni & Diego Moreno & Fabrice Decoupigny & Alessandro Araldi &, 2015. "Vers de nouvelles dynamiques de localisation des ménages et des activités dans les territoires urbains pour découpler accessibilité et mobilité automobile," Working Papers halshs-01708490, HAL.
    16. Miotti, Marco & Needell, Zachary A. & Jain, Rishee K., 2023. "The impact of urban form on daily mobility demand and energy use: Evidence from the United States," Applied Energy, Elsevier, vol. 339(C).
    17. Joachim Scheiner & Christian Holz-Rau, 2007. "Travel mode choice: affected by objective or subjective determinants?," Transportation, Springer, vol. 34(4), pages 487-511, July.
    18. van de Coevering, Paul & Maat, Kees & van Wee, Bert, 2018. "Residential self-selection, reverse causality and residential dissonance. A latent class transition model of interactions between the built environment, travel attitudes and travel behavior," Transportation Research Part A: Policy and Practice, Elsevier, vol. 118(C), pages 466-479.
    19. Tille, Cédric & Mehl, Arnaud & Schmitz, Martin, 2019. "Distance(s) and the Volatility of International Trade(s)," CEPR Discussion Papers 13630, C.E.P.R. Discussion Papers.
    20. Md. Kamruzzaman & Simon Washington & Douglas Baker & Wendy Brown & Billie Giles-Corti & Gavin Turrell, 2016. "Built environment impacts on walking for transport in Brisbane, Australia," Transportation, Springer, vol. 43(1), pages 53-77, January.

    More about this item

    Keywords

    Improvements of public transports; Endogeneity; Causality; Effective size of labor market; Size of enterprises;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa13p1040. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.