Accessibility improvements and local employment: an empirical analysis

Abstract

This paper hypothesizes that the local supply of labor is affected, among other things, by the level of accessibility to employment locations. Specifically. the paper conjectures that improved accessibility in a given area, resulting from transportation infrastructure investment, will enhance labor participation, given intervening factors such as socioeconomic and locational characteristics. It is also assumed that this effect will be more pronounced in low-income areas where costs of labor market participation, including transportation costs, constitute a real barrier to market entry. Using a simultaneous equation model, this paper empirically explores the impact of accessibility changes on the supply of labor specific job types in the South Bronx, New York, an economically distressed area.