IDEAS home Printed from https://ideas.repec.org/a/spr/anresc/v72y2024i2d10.1007_s00168-022-01201-2.html
   My bibliography  Save this article

Transit finance, growth, and equity: a dynamic panel analysis on the effect of transit revenues on low-skilled employment

Author

Listed:
  • Seunghoon Oh

    (University of Cincinnati)

  • David M. Brasington

    (University of Cincinnati)

Abstract

We examine the relationship between public transit finance, economic growth, and equity. This is the first study to analyze the long-term effect of transit operation revenues on employment growth for all workers and low-skilled workers. We use state-of-the-art dynamic panel data techniques to analyze municipalities covered by 26 transit agencies in the US state of Ohio. We find that both government subsidies and fare revenue, indicators of transit system improvement, have a positive impact on overall jobs. An increase in government subsidies by $10 per capita results in a 1.1% increase in overall jobs in the same year. The local jobs also grow by 4.6% when fare revenue is increased by $10 per capita. In addition, fare revenue has a positive impact on the number of low-skilled jobs both in current and future years. A one dollar increase in fare revenue per capita grows the number of low-skilled jobs by 1.3% in the same year and 0.4% in the next year.

Suggested Citation

  • Seunghoon Oh & David M. Brasington, 2024. "Transit finance, growth, and equity: a dynamic panel analysis on the effect of transit revenues on low-skilled employment," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(2), pages 313-333, February.
    • Handle: RePEc:spr:anresc:v:72:y:2024:i:2:d:10.1007_s00168-022-01201-2
    DOI: 10.1007/s00168-022-01201-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00168-022-01201-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00168-022-01201-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhenhua Chen & Kingsley Haynes, 2015. "Multilevel assessment of public transportation infrastructure: a spatial econometric computable general equilibrium approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(3), pages 663-685, May.
    2. Dagney Faulk & Michael J Hicks, 2016. "The impact of bus transit on employee turnover: Evidence from quasi-experimental samples," Urban Studies, Urban Studies Journal Limited, vol. 53(9), pages 1836-1852, July.
    3. Anthony J. Venables, 2007. "Evaluating Urban Transport Improvements: Cost-Benefit Analysis in the Presence of Agglomeration and Income Taxation," Journal of Transport Economics and Policy, University of Bath, vol. 41(2), pages 173-188, May.
    4. Taylor, Brian D & Garrett, Mark, 1999. "Reconsidering Social Equity in Public Transit," University of California Transportation Center, Working Papers qt2bm7b38n, University of California Transportation Center.
    5. Kevin Credit, 2019. "Transitive properties: a spatial econometric analysis of new business creation around transit," Spatial Economic Analysis, Taylor & Francis Journals, vol. 14(1), pages 26-52, January.
    6. Daniel Chatman & Robert Noland, 2011. "Do Public Transport Improvements Increase Agglomeration Economies? A Review of Literature and an Agenda for Research," Transport Reviews, Taylor & Francis Journals, vol. 31(6), pages 725-742.
    7. Yu, Haitao & Jiao, Junfeng & Houston, Eric & Peng, Zhong-Ren, 2018. "Evaluating the relationship between rail transit and industrial agglomeration: An observation from the Dallas-fort worth region, TX," Journal of Transport Geography, Elsevier, vol. 67(C), pages 33-52.
    8. Millo, Giovanni, 2017. "A simple randomization test for spatial correlation in the presence of common factors and serial correlation," Regional Science and Urban Economics, Elsevier, vol. 66(C), pages 28-38.
    9. Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
    10. Daniel G. Chatman & Robert B. Noland, 2014. "Transit Service, Physical Agglomeration and Productivity in US Metropolitan Areas," Urban Studies, Urban Studies Journal Limited, vol. 51(5), pages 917-937, April.
    11. Brasington, David M. & Haurin, Donald R., 2009. "Parents, peers, or school inputs: Which components of school outcomes are capitalized into house value?," Regional Science and Urban Economics, Elsevier, vol. 39(5), pages 523-529, September.
    12. Friso Vor & Henri Groot, 2010. "Agglomeration externalities and localized employment growth: the performance of industrial sites in Amsterdam," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 44(3), pages 409-431, June.
    13. Merlin, Louis A. & Hu, Lingqian, 2017. "Does competition matter in measures of job accessibility? Explaining employment in Los Angeles," Journal of Transport Geography, Elsevier, vol. 64(C), pages 77-88.
    14. Kristine Laura Canales & Isabelle Nilsson & Elizabeth Delmelle, 2019. "Do light rail transit investments increase employment opportunities? The case of Charlotte, North Carolina," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(1), pages 189-202, March.
    15. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

    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. Oh, Seunghoon & Chen, Na, 2022. "Do public transit and agglomeration economies collectively enhance low-skilled job accessibility in Portland, OR?," Transport Policy, Elsevier, vol. 115(C), pages 209-219.
    2. Oh, Seunghoon & Hofe, Rainer vom, 2023. "Transit-induced Agglomeration and Employment Opportunity: A Spatial Econometric Analysis of Skill- and Industry-specific Job Clusters in Philadelphia, PA," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(01), May.
    3. Guowei Lyu & Luca Bertolini & Karin Pfeffer, 2020. "Is Labour Productivity Higher in Transit Oriented Development Areas? A Study of Beijing," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 111(4), pages 652-670, September.
    4. Yu, Haitao & Jiao, Junfeng & Houston, Eric & Peng, Zhong-Ren, 2018. "Evaluating the relationship between rail transit and industrial agglomeration: An observation from the Dallas-fort worth region, TX," Journal of Transport Geography, Elsevier, vol. 67(C), pages 33-52.
    5. Elina Sukaryavichute & Elizabeth Delmelle & Colleen Hammelman, 2021. "Opportunities and challenges for small businesses in new transit neighborhoods: Understanding impacts through in‐depth interviews," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(3), pages 1025-1041, June.
    6. Arturas Juodis, 2013. "Cointegration Testing in Panel VAR Models Under Partial Identification and Spatial Dependence," UvA-Econometrics Working Papers 13-08, Universiteit van Amsterdam, Dept. of Econometrics.
    7. Alfonso Mendoza-Velázquez & Luis Carlos Ortuño-Barba & Luis David Conde-Cortés, 2022. "Corporate governance and firm performance in hybrid model countries," Review of Accounting and Finance, Emerald Group Publishing Limited, vol. 21(1), pages 32-58, February.
    8. repec:osf:socarx:ua2gj_v1 is not listed on IDEAS
    9. Jessica M. Mc Lay & Roy Lay-Yee & Barry J. Milne & Peter Davis, 2015. "Regression-Style Models for Parameter Estimation in Dynamic Microsimulation: An Empirical Performance Assessment," International Journal of Microsimulation, International Microsimulation Association, vol. 8(2), pages 83-127.
    10. Emrah Kocak & Hayriye Hilal Baglitas, 2022. "The path to sustainable municipal solid waste management: Do human development, energy efficiency, and income inequality matter?," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1947-1962, December.
    11. Carranza, Luis J. & Cayo, Juan M. & Galdon-Sanchez, Jose E., 2003. "Exchange rate volatility and economic performance in Peru: a firm level analysis," Emerging Markets Review, Elsevier, vol. 4(4), pages 472-496, December.
    12. Serge Coulombe, 2008. "Employment Adjustments in High-Trade-Exposed Manufacturing in Canada," Working Papers 0803E, University of Ottawa, Department of Economics.
    13. In Choi & Sanghyun Jung, 2021. "Cross-sectional quasi-maximum likelihood and bias-corrected pooled least squares estimators for short dynamic panels," Empirical Economics, Springer, vol. 60(1), pages 177-203, January.
    14. Lu, Dong & Qian, Xingwang & Zhu, Wenyu, 2024. "External debt currency denomination and the currency composition of foreign exchange reserves," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
    15. Bertrand, Olivier & Zuniga, Pluvia, 2006. "R&D and M&A: Are cross-border M&A different? An investigation on OECD countries," International Journal of Industrial Organization, Elsevier, vol. 24(2), pages 401-423, March.
    16. Karen Crabbé, 2013. "Are Your Firm´s Taxes Set in Warsaw? Spatial Tax Competition in Europe," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 69(3), pages 317-337, September.
    17. Serban Mogos & Alex Davis & Rui Baptista, 2021. "High and sustainable growth: persistence, volatility, and survival of high growth firms," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(1), pages 135-161, March.
    18. Mohammad Ziaul Hoque & MD. Rabiul Islam & Mohammad Nurul Azam, 2013. "Board Committee Meetings and Firm Financial Performance: An Investigation of Australian Companies," International Review of Finance, International Review of Finance Ltd., vol. 13(4), pages 503-528, December.
    19. Raffaella Santolini, 2017. "Electoral Rules And Public Spending Composition: The Case Of Italian Regions," Contemporary Economic Policy, Western Economic Association International, vol. 35(3), pages 551-577, July.
    20. Tobias Hagen, 2010. "Effects of parliamentary elections on primary budget deficits in OECD countries - robustness of the results with regard to alternative econometric estimators," Applied Economics Letters, Taylor & Francis Journals, vol. 17(2), pages 135-139, January.
    21. Bongsuk Sung & Myoung Shik Choi & Woo-Yong Song, 2019. "Exploring the Effects of Government Policies on Economic Performance: Evidence Using Panel Data for Korean Renewable Energy Technology Firms," Sustainability, MDPI, vol. 11(8), pages 1-19, April.

    More about this item

    JEL classification:

    • R42 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government and Private Investment Analysis; Road Maintenance; Transportation Planning
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

    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:spr:anresc:v:72:y:2024:i:2:d:10.1007_s00168-022-01201-2. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.