A Rapid Road to Employment? The Impacts of a Bus Rapid Transit System in Lima

34 Pages Posted: 23 Jan 2019

See all articles by Lynn Scholl

Lynn Scholl

Inter-American Development Bank (IDB)

Oscar A. Mitnik

Inter-American Development Bank; IZA Institute of Labor Economics

Daniel Oviedo

University College London

Patricia Yañez-Pagans

Inter-American Development Bank (IDB)

Abstract

Despite the growing interest in and proliferation of Bus Rapid Transit (BRT) systems around the world, their causal impacts on labor market outcomes remain unexplored. Reduced travel times for those who live near BRT stations or near feeder lines, may increase access to a wider array of job opportunities, potentially leading to increased rates of employment, access to higher quality (or formal) jobs, and increased labor hours and earnings. This paper assesses the effects of the Metropolitano, the BRT system in Lima (Peru), on individual-level job market outcomes.We rely on a difference-in-differences empirical strategy, based on comparing individuals who live close to the BRT system with a comparison group that lives farther from the system, before and after the system started to operate. We find large impacts on employment, hours worked and labor earnings for those individuals close to the BRT stations, but not for those who live close to the feeder lines. Despite the potential to connect poor populations, we find no evidence of impacts for populations living in lower income areas.

Keywords: Bus Rapid Transit, employment, impact evaluation

JEL Classification: J01, J21, O12, R40

Suggested Citation

Scholl, Lynn and Mitnik, Oscar A. and Oviedo, Daniel and Yañez-Pagans, Patricia, A Rapid Road to Employment? The Impacts of a Bus Rapid Transit System in Lima. IZA Discussion Paper No. 12019. Available at SSRN: https://ssrn.com/abstract=3318779

Lynn Scholl (Contact Author)

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

Oscar A. Mitnik

Inter-American Development Bank ( email )

1300 New York Ave, NW
Washington, DC 20577
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Daniel Oviedo

University College London

Patricia Yañez-Pagans

Inter-American Development Bank (IDB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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