Analysis of Cost-Effectiveness of Employment Transportation Services

The author examined cost-effectiveness of employment transportation (ET) services funded by the Job Access and Reverse Commute program of FTA in 2002. These services transport low-wage workers to jobs. The author presented multiple sources of primary and administrative data on users and programs in 23 ET sites. ET cost per ride measures were compared with cost per ride measures of transit services that were operating in the same area (called peer transit services). A cost per user per year was estimated to determine the level of transportation investments on the mobility of low-wage workers. On a per ride basis, ET services cost more to deliver than did peer transit services, but a wide variation existed in the level of investments and subsidies among different types of users, areas, and types of service. The median estimated cost per ET service user per year was similar to the annual investment per recipient by several social and human services and workforce development programs that supported low-income individuals to achieve improved economic outcomes. ET annual expenditures were the greatest for low-wage individuals who were traveling to work and less so for low-income individuals who were traveling to job training, to look for jobs, or to shop and make other discretionary trips. Implications are drawn for human services transportation coordination and for data and reporting requirements.