IDEAS home Printed from
   My bibliography  Save this paper

Are public transport improvements endogenous with respect to employment and income location in a city?


  • Carlos Augusto Olarte Bacares

    () (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)


Previous research has 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 nearly causal relationship between those variables and the infrastructure such as highways in different zones of a city. Nevertheless, no one study has taken into account the degree to which each area of a city benefits from the latest improvements to public transport. The aim of this research is to analyse the relationship between the size of the labour market, the income and the employment concentration with respect to improvements to public transport (Transmilenio) in Bogota. The degree of enhancement of public transport in a zone is suspected to be endogenous. Through the use of OLS estimations and then 2SLS, the validation of endogeneity provides sufficient tools to infer causality of improvement of public transport. The size of companies, defined by the number of jobs they offer, plays the role of instrumental variable. In essence, the number of jobs, the size of the labour market and income are largely defined by the level of improvement to urban public transport in each zone of the city but the causality relationship changes depending on the size of companies established in each zone. In the case of Bogota, public transport improvements seams to have a causality relationship with the income of inhabitants in each zone and the number of jobs, and this changes with respect to the size of enterprises. In contrast, the size of the labour market, defined as the number of jobs reachable in a specific time, is not determined by the degree of the presence of public transport enhancement.

Suggested Citation

  • 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.
  • Handle: RePEc:hal:journl:halshs-00973398
    Note: View the original document on HAL open archive server:

    Download full text from publisher

    File URL:
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    1. Paul Krugman, 1997. "Development, Geography, and Economic Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 026261135x, September.
    2. Gérard Koenig, 1974. "Théorie économique de l'accessibilité urbaine," Revue Économique, Programme National Persée, vol. 25(2), pages 275-297.
    3. 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.
    4. 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.
    5. Remy Prud'homme & Chang-Woon Lee, 1999. "Size, Sprawl, Speed and the Efficiency of Cities," Urban Studies, Urban Studies Journal Limited, vol. 36(11), pages 1849-1858, October.
    6. 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.
    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. Carlos Augusto Olarte Bacares, 2013. "Do public transport improvements increase employment and income in a city?," ERSA conference papers ersa13p1040, European Regional Science Association.
    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. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. Kajosaari, Anna & Hasanzadeh, Kamyar & Kyttä, Marketta, 2019. "Residential dissonance and walking for transport," Journal of Transport Geography, Elsevier, vol. 74(C), pages 134-144.
    12. 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.
    13. Joachim Scheiner & Christian Holz-Rau, 2007. "Travel mode choice: affected by objective or subjective determinants?," Transportation, Springer, vol. 34(4), pages 487-511, July.
    14. 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.
    15. Mehl, Arnaud & Schmitz, Martin & Tille, Cédric, 2019. "Distance(s) and the volatility of international trade(s)," Working Paper Series 2252, European Central Bank.
    16. 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.
    17. Giuseppe Attanasi & Francesco Passarelli & Giulia Urso & Hana Cosic, 2019. "Privatization of a Tourism Event: Do Attendees Perceive it as a Risky Cultural Lottery?," Sustainability, MDPI, Open Access Journal, vol. 11(9), pages 1-16, May.
    18. Næss, Petter & Peters, Sebastian & Stefansdottir, Harpa & Strand, Arvid, 2018. "Causality, not just correlation: Residential location, transport rationales and travel behavior across metropolitan contexts," Journal of Transport Geography, Elsevier, vol. 69(C), pages 181-195.
    19. Lin, Tao & Wang, Donggen & Guan, Xiaodong, 2017. "The built environment, travel attitude, and travel behavior: Residential self-selection or residential determination?," Journal of Transport Geography, Elsevier, vol. 65(C), pages 111-122.
    20. Xinyu Cao & Patricia L. Mokhtarian, 2012. "The connections among accessibility, self- selection and walking behaviour: a case study of Northern California residents," Chapters, in: Karst T. Geurs & Kevin J. Krizek & Aura Reggiani (ed.), Accessibility Analysis and Transport Planning, chapter 5, pages 73-95, Edward Elgar Publishing.

    More about this item


    Causality; improvements of public transports; endogeneity; effective size of labor market; size of enterprises; Causalité; améliorations des transports publics; endogénéité; taille effective du marché du travail; taille des entreprises; Transmilenio;
    All these keywords.

    JEL classification:

    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:hal:journl:halshs-00973398. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.