Effects of Job Accessibility Improved by Public Transport System: Natural Experimental Evidence from the Copenhagen Metro

This study examines the effect of accessibility to urban jobs via a public transport system on individual earnings. The effect of improved public transport based accessibility on earnings and commuting behaviour is determined by exploiting the exogenous variation in access to a public rail and Metro system due to the construction of a new terminal Metro station connecting southern townships to the city centre of Copenhagen. The results show that public transport based job accessibility has a positive and permanent effect on individual earnings. The increase in earnings is associated with a change in commuting patterns as the improved access to public transport facilitates a shift from employment within the township to better paid jobs in the city centre, as well as in other suburbs of the Copenhagen metropolitan area.