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The impact of public transport expansions on informality: the case of the São Paulo Metropolitan Region

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  • Ana Isabel Moreno-Monroy
  • Frederico Ramos

Abstract

The São Paulo Metropolitan Region (SPMR) displays a strong core-periphery divide. Central areas concentrate the bulk of formal jobs while peripheral areas display high incidence of informal employment. This pattern is reinforced by a large deficit in urban transport provision. Against this background, we estimate the impact of expansions of the public transport system on local informality rates for the SPMR between 2000 and 2010. We compare the average changes in informality in areas which received new public transport infrastructure with the average changes in areas which were supposed to receive infrastructure according to official plans, but did not because of delays. After controlling for endogenous selection, we find that informality decreased on average 15 percent faster in areas receiving new public transport infrastructure compared to areas that faced project delays.

Suggested Citation

  • Ana Isabel Moreno-Monroy & Frederico Ramos, 2015. "The impact of public transport expansions on informality: the case of the São Paulo Metropolitan Region," ERSA conference papers ersa15p1551, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa15p1551
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    Cited by:

    1. Dustan, Andrew & Ngo, Diana K.L., 2018. "Commuting to educational opportunity? School choice effects of mass transit expansion in Mexico City," Economics of Education Review, Elsevier, vol. 63(C), pages 116-133.
    2. Ana I. Moreno-Monroy, 2016. "Access to public transport and labor informality," IZA World of Labor, Institute of Labor Economics (IZA), pages 274-274, July.
    3. Boisjoly, Geneviève & Moreno-Monroy, Ana Isabel & El-Geneidy, Ahmed, 2017. "Informality and accessibility to jobs by public transit: Evidence from the São Paulo Metropolitan Region," Journal of Transport Geography, Elsevier, vol. 64(C), pages 89-96.

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    More about this item

    Keywords

    Urban transport; informality; Brazil; impact evaluation;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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