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The effect of transportation costs on elderly labor market participation

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  • de Alencar, Matheus Oliveira
  • Niquito, Thais Waideman
  • Triaca, Lívia Madeira
  • Ribeiro, Felipe Garcia

Abstract

This study investigates the impact of the repeal of free public transportation on elderly labor market participation. The research leverages a natural experiment from the termination of free transportation for individuals aged 60 to 64 in Porto Alegre, Brazil, using microdata from the Continuous National Household Sample Survey (PNADC) and the Difference-in-Differences (DiD) method. The results indicate that the repeal of free transportation reduced the labor supply of this age group. Dynamic analysis and falsification tests confirm the robustness of the findings. The study concludes that transportation costs play a crucial role in the elderly labor market participation.

Suggested Citation

  • de Alencar, Matheus Oliveira & Niquito, Thais Waideman & Triaca, Lívia Madeira & Ribeiro, Felipe Garcia, 2025. "The effect of transportation costs on elderly labor market participation," Economics Letters, Elsevier, vol. 255(C).
    • Handle: RePEc:eee:ecolet:v:255:y:2025:i:c:s0165176525003611
    DOI: 10.1016/j.econlet.2025.112524
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