|
|
Transport Infrastructure Investment, Commuting, and Wages
|
|
Roni Frish and Shay Tsur
|
|
|
Abstract
|
|
This study examines the contribution of road and rail investment to the increase in
economic activity in Israel. We focus on the contribution to the increase in commuting––
daily travel from home to work by people whose workplace is not in the district where
they live––because the bottleneck of the transport system occurs in the morning and
afternoon rush hours when people travel to and from work. We estimate a model at the
level of natural districts (of which Israel has fifty), and this shows that total infrastructure
investment in 1993–2003 explains about two-thirds of the total increase of 240,00
commuters in that period, with men accounting for most of the increase. Using data on the
different districts we also examined the impact of total road investment in 1992–2004 on
men's wage level, and found that the investment increased wages by 10–14 percent.
|
|
|
The full article as a PDF file
|
|
|
|
|
