Public Transit Access and Income Segregation

Abstract

What are the implications of mass transit improvements for residential income segregation within cities? I observe large income differences in households' usage of and residential proximity to `fast' versus `slow' transit (e.g. subways versus buses on shared lanes). Consistent with these observations, I propose a theoretical framework to characterize the relationship between travel mode choices and income segregation within cities. I find that transit improvements that would maximize transit ridership tend to reduce income segregation when improving `slow’ transit but increase income segregation when improving `fast’ transit. These results are consistent with recent trends in transit ridership and neighborhood incomes in US cities.

Keywords: Mass Transit; Public Transportation; Residential Location Choice; Income Sorting; Income Segregation

JEL Classification: R23, R28, R42, R53