Scandinavian Working Papers in Economics

Working papers in Transport Economics,
CTS - Centre for Transport Studies Stockholm (KTH and VTI)

No 2015:18: The impact of accessibility on labor earnings

Gunnar Isacsson , Maria Börjesson (), Matts Andersson () and Christer Anderstig ()
Additional contact information
Gunnar Isacsson: Trafikverket, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Maria Börjesson: CTS, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Matts Andersson: WSP, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden
Christer Anderstig: WSP, Postal: Centrum för Transportstudier (CTS), Teknikringen 10, 100 44 Stockholm, Sweden

Abstract: We estimate the impact of job accessibility on wage earnings using micro-level data including all workers in the greater Stockholm region at two points in time 11 years apart. We control for both zone-specific and individual-specific fixed effects by separating workers who have changed zone of residence and those who have stayed. The accessibility is derived from the national transport model, taking into account consumer behavior and preferences for all travel modes and travel time components. A novel instrumental variable based on the temporal changes in job accessibility resulting from transport system improvements over the 11 years is applied. The elasticity of accessibility defined from the worker’s place of residence is estimated at 0.007. The elasticity of wage earnings with respect to job accessibility at the work place is only significant for workers moving work place and for those estimated at 0.036.

Keywords: Cost-Benefit Analysis; Accessibility; Agglomeration effects; Wider Economic Benefits

JEL-codes: R12; R41; R42; R48

22 pages, January 25, 2016

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CTS2015-18.pdf PDF-file 

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