The Impact of Fare-Free Public Transit on Labor Market Outcomes

Despite the increasing attention on the role of public transit policies in improving job accessibility, research on the relationship between public transit fares and employment outcomes has been scant. Utilizing a difference-in-differences (DiD) method, this study seeks to understand the causal impact of fare-free public transit (FFPT) policy on labor market outcomes. The results reveal that although the FFPT program did not significantly influence overall employment outcomes, its impact varied across different demographic groups. Unintended consequences, such as urban displacement of lower-income households, require more attention in the design of public transit programs. This study contributes to bridging the research gap on the causal effects of public transportation policies on labor market dynamics, emphasizing the need for more nuanced research and policy design.