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Dr. Robert E. Paaswell
Dr. Joseph Berechman
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In this paper we hypothesize that the local supply of labor (i.e., labor force participation) is affected, among other things, by the level of accessibility to employment locations. Specifically, we conjecture that improved accessibility in a given area, resulting from transportation infrastructure investment, will enhance labor participation, given intervening factors such as socioeconomic and locational characteristics. We further conjecture that this effect will be more pronounced in low-income areas where costs of labor-market participation, including transportation costs, constitute a real barrier to market entry. Using a simultaneous equation model, this paper empirically explores the impact of accessibility changes on the supply of labor in specific job types in the South Bronx, New York, an economically distressed area. The major sources of data for this study are three U.S. Census Bureau data files from the 1990 Census Transportation Planning Package.