LOCAL EMPLOYMENT DYNAMICS AND COMMUTING COSTS

Introduction

  • The “Forfait Toutes Zones” (FTZ) entered into force on Sept. 2015 in the Paris area metropolitan
  • The costs of using public transport decreased for workers living in the outskirts of Paris
  • The costs of using public transport was (almost) unchanged in the city center
  • A nice setting to analyze the effects of a change in commuting costs on other variables

Context: Grand Paris Express

source: https://www.societedugrandparis.fr/gpe/carte#lignes

Context: Grand Paris Express

source: https://www.societedugrandparis.fr/emploi

Data

Data Sources

  • Monthly # of workers registered to Pole Emploi at the municipality level: Pole Emploi
  • Demographic and economic characteristics of municipalities and IRIS: INSEE
  • House prices: DVF
  • Fare area at the IRIS level: Vianavigo

Cost change by fare area

Fare area at the IRIS level

Econometrics

Main specification

$$y_{it} = \alpha_i + \gamma_t + \beta \times \delta_{i,t} + \eta_i t + \varepsilon_{i,t}$$

  • $\alpha_i$: area fixed effect
  • $\gamma_t$: time fixed effects
  • $\delta_{i,t}$: indicator = 1 if treated and post-reform
  • $\eta_i$: area-specific linear trend
  • $\varepsilon_{i,t}$: error term

Results

For areas benefiting from the reform (zone 3):

  • 0.25 percentage point decline in the unemployment rate
  • 0.60 percentage point increase in the share of employed workers commuting using public transport
  • 1.4% increase in the price of residential real estate