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
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

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
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