Evaluating the Impact of Increased Access to Public Bus Transportation on Segregated Minorities: Evidence from Israel

Most Arab citizens in Israel reside in segregated towns that are relatively far from main employment areas. This geographic distance is augmented by low rates of car ownership and a general lack of access to public transportation. In this study, we analyze the labor market effects of a vast expansio...

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Bibliographic Details
Published in:Discussion paper (Makhon le-meḥḳar kalkali be-Yiśraʼel ʻal-shem Moris Falḳ) 2021-01 (6), p.0_1-32
Main Authors: Avivi, Hadar, Schlosser, Analia, Weisburd, Sarit
Format: Article
Language:English
Subjects:
Arab people
Buses
Commuting
Employment
Estimates
Expansion
Labor force
Labor market
Neighborhoods
Population
Public transportation
Skilled workers
Women
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Summary:Most Arab citizens in Israel reside in segregated towns that are relatively far from main employment areas. This geographic distance is augmented by low rates of car ownership and a general lack of access to public transportation. In this study, we analyze the labor market effects of a vast expansion of the public bus transportation system in Arab localities in Israel during the years 2010-2016. Using detailed administrative data from the National Insurance Institute covering employment and wages of the Israeli Arab population between the years 2010-2016, we implement a difference-indifferences event study design to assess the effect of a large increase in the accessibility to public transportation on labor force outcomes. We find that the increase in buses resulted in a positive effect on the employment rate and yearly earnings of both men and women roughly four years after the bus expansion. However, once we take into account the unbalanced nature of the data we find that the positive earnings and employment effects stem from localities treated in 2011. Due to limited data availability of pre-treatment years for this group, we are unable to determine whether the estimated effect of busses on employment and earnings is causal.
ISSN:0333-7839