Waiting for the R train: Public transportation and employment

Expanding employment opportunities for citizens has become an increasingly central goal of public policy in the United States. Prior work has considered that the inability of households to spatially access jobs may be a driver of unemployment. The provision of public transportation provides a viable policy lever to increase the number of job opportunities available to households. Previous research has yielded mixed results regarding whether household location is an important factor in determining employment status. Several papers have identified mobility as a limiting factor for obtaining a job, particularly in regards to private vehicle ownership. The location of economically developed neighbourhoods and the citing of public transportation are conceivably codetermined, presenting an endogenous relationship. It is therefore unclear if public transportation access is actually contributing to neighbourhood job market outcomes. This paper will use the incidence of Hurricane Sandy striking New York City on 29 October 2012 and the resulting exogenous reduction in public transit access to particular neighbourhoods as a natural experiment to test for the effect of public transportation on employment outcomes. This study identifies a significant causal effect linking public transportation access to neighbourhood unemployment rates, particularly amongst subgroups dependent on public transit.