Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/173046
Authors: 
Fretz, Stephan
Parchet, Raphael
Robert-Nicoud, Frédéric
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper 6770
Abstract: 
We design a spatial model featuring workers embodied with heterogeneous skills. In equilibrium, locations with improved market access become relatively more attractive to the high-skilled, high-income earners. We then empirically analyze the effects of the construction of the Swiss highway network between 1960 and 2010 on the distribution of income at the local level, as well as on employment and commuting by education level. We find that the advent of a new highway access within 10km led to a long-term 19%-increase of the share of high-income taxpayers and a 6%-decrease of the share of low-income taxpayers. Results are similar for employment data decomposed by education level, as well as for in- and out-commuters. Highways also contributed to job and residential urban sprawl.
Subjects: 
transportation
highway
market access
income sorting
JEL: 
D31
O18
H54
R11
R23
Document Type: 
Working Paper

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