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
American Economic Journal: Economic Policy
(pp. 1–34)
Abstract
We conduct a randomized controlled trial to study the employment effects of providing free public transportation to individuals with low incomes. 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.Citation
Brough, Rebecca, Matthew Freedman, and David C. Phillips. 2025. "Eliminating Fares to Expand Opportunities: Experimental Evidence on the Impacts of Free Public Transportation on Economic and Social Disparities." American Economic Journal: Economic Policy 17 (3): 1–34. DOI: 10.1257/pol.20230460Additional Materials
JEL Classification
- G51 Household Finance: Household Saving, Borrowing, Debt, and Wealth
- J22 Time Allocation and Labor Supply
- J31 Wage Level and Structure; Wage Differentials
- L92 Railroads and Other Surface Transportation
- L98 Industry Studies: Utilities and Transportation: Government Policy
- R48 Transportation Economics: Government Pricing and Policy