We conduct a randomized controlled trial to study the employment effects of providing free public transportation to individuals with low incomes. A temporary subsidy that reduces the price of transit to zero has no significant effects on individuals’ paid hours worked or earnings. Using rich administrative data, we also explore a range of other outcomes. We find suggestive evidence that transit subsidies improve measures of financial and physical health. (JEL G51, J22, J31, L92, L98, R48)
Brough et al. (Wed,) studied this question.
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