Kraks Fond Seminar (26. nov. 2019)

Rosa Sanchis-Guarner, Postdoctoral Fellow at the Department of Management of the Imperial College Business School. Would you like to know how road improvements affect labour market performance?  Everybody is welcome to participate from 14:00 – 15:00.

 

Driving up Wages: The Effects of Road Construction in Great Britain

Reductions in travel time between locations have direct consequences on the effective size of labour markets. However, there is little evidence on how road improvements affect labour market performance. This paper estimates the effects of road construction on individual outcomes using micro data from Great Britain. To capture the effects, I use a measure of accessibility to employment through the road network. To address the endogeneity of new roads placement, I compare workers located close to the schemes and identify the effect from different exposure to accessibility changes. I further use work and home location specific individual fixed-effects to separate the effects due to mobility from those due to accessibility changes in-situ. For stable work-home locations, I find a positive impact of increases in accessibility from work location on wages and hours worked, but no effect of accessibility from home on either outcome.

 

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