1 / 15

Labor market accessibility and unemployment

Labor market accessibility and unemployment. Therese Norman Maria Börjesson, Christer Anderstig. Purpose. How do increased labor market accessibility due to transport investments induce changes in the unemployment rate ?. Mechanisms/Hypothesis.

evelyn
Download Presentation

Labor market accessibility and unemployment

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Labor market accessibility and unemployment Therese Norman Maria Börjesson, ChristerAnderstig

  2. Purpose • How do increased labor market accessibility due to transport investments induce changes in the unemployment rate?

  3. Mechanisms/Hypothesis • Generosity of welfare system; income taxation increases unemployment. • Transport system can correct for this distortion (Ihlanfeldt& Sjoquist, 1998; Brueckner & Martin, 1997; Brueckner & Zenou, 2003) • Reservation wages (Åslund, Öst & Zenou; 2010) • Search costs (Mortensen, 1987; Isacsson, 2003; Duranton & Puga, 2004; Pilegaard & Fosgerau, 2008; Smith & Zenou, 2003; Stoll, 1998) Lower transport costs -> may reduce commuting cost, hence decrease unemployment

  4. Data ΔAE ΔAT A • A: Initial job accessibility (1985) • ΔAT: Changes in job accessibility due to changes in the transport system (85-97) (changes in generalized travel costs) • ΔE:Employment rate change (93-02) • ΔAE: Changes in job accessibility due to employment changes (93-02) 1985 1993 1997 2002 ΔE

  5. Data Grouped data of individuals based on (34503 segments): • Municipality of residence • Gender • Age (6 categories) • Education (4 categories) • Native (Swedish, Nordic, Non-nordic) Dependent variable:

  6. Model , Ei,r= Employment rate in group i and municipality r Ar = Initial accessibility AT,r = Accessibility change due to transport system AE,r = Accessibility change due to employment

  7. Accessibility • is a negative sensitivity parameter • Accessibility change due to changes in transport • Accessibility change due to changes in employment

  8. Data

  9. Employment

  10. Job accessibility

  11. Improvements of the transport system increases the employment rate with an elasticity of 0.01. • Diminishing returns

  12. Segmented on education level Education level proxy for wage prospects Reservation wages more important for low income groups .

  13. Methodologicalissues • Reflecting the transport system by using detailed data: -The accessibility measures is taken directly from a transport model, taking into account commuting behavior and perceived generalized costs of all travel modes in use. This also makes it compatible with measures used in standard cost-benefit analyses. -Reducing endogeneity: -The change in job accessibility from a previous period is estimated rather than the level. -The accessibility measures are divided into two variables in order to pinpoint the accessibility change induced by (i) changes in the transport system rather than (ii) changes in the number of jobs. -Controlling for changes in the socio-economic composition of the population by use of disaggregated data.

  14. Case study “Åtgärdsplanen 2010-2020”

  15. Conclusions • Improvements in job accessibility due to changes in the transport system have a positive impact on employment level, elasticity 0.01 • The impact increases with lower education level (income level) • Consistent with theories on reservation wages

More Related