How does transportation shape intrametropolitan growth? An answer from the Regional Express Rail

Abstract

This paper analyzes the influence of transportation infrastructure, and in particular of the Regional Express Rail (RER), on employment and population growth in the Paris metropolitan area between 1968 and 2010. In order to make proper causal inference, we rely on historical instruments and control for all other transportation modes that could be complement or substitute to the RER. Our results show that proximity to an RER station increases employment and population density and, in particular, employment and population growth. The latter effects are higher in municipalities located near RER stations and close to employment (sub)centers. They are also found to be particularly strong for jobs in the service sector, for factory workers, and for highly educated population.We find no impact of the RER expansion on employment growth during the first part of the period, while the effect on population growth appears earlier but declines over time.