Daniel F. Heuermann
University of Regensburg
Department of Economics
93040 Regensburg, Germany
NBER Working Papers and Publications
|April 2018||The Effect of Infrastructure on Worker Mobility: Evidence from High-Speed Rail Expansion in Germany|
with Johannes F. Schmieder: w24507
We use the expansion of the high-speed rail network in Germany as a natural experiment to examine the causal effect of reductions in commuting time between regions on the commuting decisions of workers and their choices regarding where to live and where to work. We exploit three key features in this setting: i) investment in high-speed rail has, in some cases dramatically, reduced travel times between regions, ii) several small towns were connected to the high-speed rail network only for political reasons, and iii) high-speed trains have left the transportation of goods unaffected. Combining novel information on train schedules and the opening of high-speed rail stations with panel data on all workers in Germany, we show that a reduction in travel time by one percent raises the number of c...