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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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    References listed on IDEAS

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    1. Lee, R., 2016. "Macroeconomics, Aging, and Growth," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 59-118, Elsevier.
    2. Christine E Bishop, 2022. "Economics of Aging: New Insights," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 77(4), pages 735-738.
    3. Nicole Maestas, 2010. "Expectations and Realizations of Work after Retirement," Journal of Human Resources, University of Wisconsin Press, vol. 45(3).
    4. Christine E Bishop, 2022. "Correction to: Economics of Aging: New Insights," The Journals of Gerontology: Series B, The Gerontological Society of America, vol. 77(6), pages 1177-1177.
    5. Gonzaga, Gustavo & Reis, Mauricio Cortez, 2011. "Oferta de Trabalho e Ciclo Econômico: Os Efeitos Trabalhador Adicional e Desalento no Brasil," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 65(2), June.
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