Empirical Strategies and Data Requirements for Estimating Labour Market Impacts of Transport Projects∗

Authors

• Krista Riukula ETLA Economic Research
• Touko Väänänen Aalto university

DOI:

https://doi.org/10.33358/jfea.148261

Keywords:

Transport project, Labour market, Wider economic impacts, Empirical research

Abstract

Transport infrastructure investment is an important tool for economic development, and its effects on labour market outcomes are often referred to when discussing the economic benefits of transport projects. However, based on theoretical models and empirical research, the effects are not straightforward. This review aims to provide researchers with a good starting point for analysing the labour market effects of transport projects. We present strategies and data requirements for empirical identification of transport projects’ causal effects on labour market outcomes. We present available data sources in Finland. Furthermore, we discuss using research findings to inform policy by examining the external validity of the results, the effects of the COVID-19 pandemic on research of transport and labour market, and integrating labour market effects into cost-benefit analyses while considering the risk of double counting benefits.