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  5. Eliminating Fares to Expand Opportunities: Experimental Evidence on the Impacts of Free Public Transportation on Economic and Social Disparities

American Economic Journal:
Economic Policy

ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)

Eliminating Fares to Expand Opportunities: Experimental Evidence on the Impacts of Free Public Transportation on Economic and Social Disparities

  • Rebecca Brough
  • Matthew Freedman
  • David C. Phillips
American Economic Journal: Economic Policy (Forthcoming)

Abstract

We conduct a randomized controlled trial to study the employment effects of providing free public transportation to individuals with low income. A temporary subsidy that reduces the price of transit to zero has no significant effects on individuals’ paid hours worked or earnings. Using rich administrative data, we also explore a range of other outcomes. We find suggestive evidence that transit subsidies improve measures of financial and physical health.

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