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Estimating commuter benefits of a new transit system: Evidence from New York City’s ferry service

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  • Tyndall, Justin

Abstract

This paper estimates the impact of a new transit system on worker outcomes, accounting for endogenous worker decisions. I examine the phased opening of New York City’s commuter ferry system. I find evidence of a small but significant shift in commuting flows, towards routes with ferry service, driven by middle-to-high-income workers. I then propose and estimate a novel structural neighborhood choice model that recovers workers’ valuation of ferry service and the aggregate effects of the system on employment. Higher-income workers display a stronger preference for the ferry. Ferry routes also match the location preferences of higher-income workers, allowing these workers to capture almost all direct benefits from the new system. Differing home and work location preferences across income groups largely determine who benefits from a new transit system.

Suggested Citation

  • Tyndall, Justin, 2025. "Estimating commuter benefits of a new transit system: Evidence from New York City’s ferry service," Regional Science and Urban Economics, Elsevier, vol. 114(C).
    • Handle: RePEc:eee:regeco:v:114:y:2025:i:c:s0166046225000493
    DOI: 10.1016/j.regsciurbeco.2025.104132
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    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • 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
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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