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A Rapid Road to Employment? The Impacts of a Bus Rapid Transit System in Lima

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  • Scholl, Lynn

    (Inter-American Development Bank)

  • Martinez, Daniel

    (Inter-American Development Bank)

  • Mitnik, Oscar A.

    (Inter-American Development Bank)

  • Oviedo, Daniel

    (University College London)

  • Yanez-Pagans, Patricia

    (IDB Invest)

Abstract

Despite the growing interest in and proliferation of Bus Rapid Transit (BRT) systems around the world, their causal impacts on labor market outcomes remain unexplored. Reduced travel times for those who live near BRT stations or near feeder lines, may increase access to a wider array of job opportunities, potentially leading to increased rates of employment, access to higher quality (or formal) jobs, and increased labor hours and earnings. This paper assesses the effects of the Metropolitano, the BRT system in Lima (Peru), on individual-level job market outcomes. We rely on a difference-in-differences empirical strategy, based on comparing individuals who live close to the BRT system with a comparison group that lives farther from the system, before and after the system started to operate. We find large impacts on employment, hours worked and labor earnings for those individuals close to the BRT stations, but not for those who live close to the feeder lines. Despite the potential to connect poor populations, we find no evidence of impacts for populations living in lower income areas.

Suggested Citation

  • Scholl, Lynn & Martinez, Daniel & Mitnik, Oscar A. & Oviedo, Daniel & Yanez-Pagans, Patricia, 2018. "A Rapid Road to Employment? The Impacts of a Bus Rapid Transit System in Lima," IZA Discussion Papers 12019, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp12019
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    1. Daniel Oviedo & Lynn Scholl & Marco Innao & Lauramaria Pedraza, 2019. "Do Bus Rapid Transit Systems Improve Accessibility to Job Opportunities for the Poor? The Case of Lima, Peru," Sustainability, MDPI, vol. 11(10), pages 1-24, May.
    2. Patricia Yañez-Pagans & Daniel Martinez & Oscar A. Mitnik & Lynn Scholl & Antonia Vazquez, 2019. "Urban transport systems in Latin America and the Caribbean: lessons and challenges," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 28(1), pages 1-25, December.
    3. Daniel F. Martinez & Oscar A. Mitnik & Edgar Salgado & Lynn Scholl & Patricia Yañez-Pagans, 2020. "Connecting to Economic Opportunity: the Role of Public Transport in Promoting Women’s Employment in Lima," Journal of Economics, Race, and Policy, Springer, vol. 3(1), pages 1-23, March.

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    More about this item

    Keywords

    Bus Rapid Transit; employment; impact evaluation;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

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