Transportation infrastructure and employment: Are all investments created equal?

This study examines the impact of different transportation infrastructure investments on employment in 11 metropolitan statistical areas (MSA) in the United States from 1990 to 2018. Using spatial econometric techniques to analyze highway, air transport and railway infrastructure investments, this study finds that the employment effects of these investments vary widely across MSAs. Highway infrastructure is found to have positive, significant total effects on employment in most MSAs. Railway infrastructure investment has positive employment effects in MSAs with robust rail systems and high ridership. Air transport infrastructure investment results are mixed across MSAs and specification, but consistently provide small positive employment effects to landlocked Midwestern MSAs. Overall, highway infrastructure investment is found to provide the largest total effects on employment, but caution should be taken to account for spillover effects and other societal externalities related to transportation.