Does fare-free transit increase labor-force participation and reduce income inequality?

Fare-free transit policy is not new to several public transit systems and communities in the U.S., as some local transit agencies have begun implementing fare-free transit policies or variations of them since the 1960s. Over time, the discussion regarding fare-free transit has been reignited by decr...

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Main Authors: Kenneth Ofosu-Kwabe, Siew Hoon Lim, Narendra Malalgoda
Format: Article
Language:English
Published: Elsevier 2024-01-01
Series:Journal of Public Transportation
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Online Access:http://www.sciencedirect.com/science/article/pii/S1077291X24000158
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author Kenneth Ofosu-Kwabe
Siew Hoon Lim
Narendra Malalgoda
author_facet Kenneth Ofosu-Kwabe
Siew Hoon Lim
Narendra Malalgoda
author_sort Kenneth Ofosu-Kwabe
collection DOAJ
description Fare-free transit policy is not new to several public transit systems and communities in the U.S., as some local transit agencies have begun implementing fare-free transit policies or variations of them since the 1960s. Over time, the discussion regarding fare-free transit has been reignited by decreasing ridership trends in recent years and other thematic inquiries surrounding access, mobility and equity, operational efficiency, agency financial health, and community impacts. This research empirically investigates the effects of fare-free policy on transit ridership, labor force participation and income inequality. Using panel data regression models, we draw several conclusions: 1) Fare-free transit significantly increases ridership. 2) Fare-free transit neither significantly increases labor force participation rate nor reduces income inequality in small and medium-sized urbans. 3) Fare policy aside, external factors such as increased household income and work-from-home significantly reduce the demand for transit in small-urbanized areas.
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spelling doaj-art-8abfbd6d1b734c5bbd159175f59e04ee2025-08-20T01:58:27ZengElsevierJournal of Public Transportation2375-09012024-01-012610009510.1016/j.jpubtr.2024.100095Does fare-free transit increase labor-force participation and reduce income inequality?Kenneth Ofosu-Kwabe0Siew Hoon Lim1Narendra Malalgoda2Glenn Department of Civil Engineering, Clemson University, Clemson, SC 29634, USADepartment of Agribusiness and Applied Economics, North Dakota State University, Fargo, ND 58102, USA; Corresponding author.Department of Supply Chain Management, Asper School of Business, University of Manitoba, Room 624, 181 Freedman Cres, Winnipeg, Manitoba R3T 5V4, CanadaFare-free transit policy is not new to several public transit systems and communities in the U.S., as some local transit agencies have begun implementing fare-free transit policies or variations of them since the 1960s. Over time, the discussion regarding fare-free transit has been reignited by decreasing ridership trends in recent years and other thematic inquiries surrounding access, mobility and equity, operational efficiency, agency financial health, and community impacts. This research empirically investigates the effects of fare-free policy on transit ridership, labor force participation and income inequality. Using panel data regression models, we draw several conclusions: 1) Fare-free transit significantly increases ridership. 2) Fare-free transit neither significantly increases labor force participation rate nor reduces income inequality in small and medium-sized urbans. 3) Fare policy aside, external factors such as increased household income and work-from-home significantly reduce the demand for transit in small-urbanized areas.http://www.sciencedirect.com/science/article/pii/S1077291X24000158Fare-free transitLabor force participationIncome inequality
spellingShingle Kenneth Ofosu-Kwabe
Siew Hoon Lim
Narendra Malalgoda
Does fare-free transit increase labor-force participation and reduce income inequality?
Journal of Public Transportation
Fare-free transit
Labor force participation
Income inequality
title Does fare-free transit increase labor-force participation and reduce income inequality?
title_full Does fare-free transit increase labor-force participation and reduce income inequality?
title_fullStr Does fare-free transit increase labor-force participation and reduce income inequality?
title_full_unstemmed Does fare-free transit increase labor-force participation and reduce income inequality?
title_short Does fare-free transit increase labor-force participation and reduce income inequality?
title_sort does fare free transit increase labor force participation and reduce income inequality
topic Fare-free transit
Labor force participation
Income inequality
url http://www.sciencedirect.com/science/article/pii/S1077291X24000158
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AT siewhoonlim doesfarefreetransitincreaselaborforceparticipationandreduceincomeinequality
AT narendramalalgoda doesfarefreetransitincreaselaborforceparticipationandreduceincomeinequality