Local labour market effects of transport investments: The case of two Norwegian regions Anne Gjerdåker and Øystein Engebretsen Institute of transport economics, Oslo, Norway Email:
[email protected] Abstract: Improvements in infrastructure may facilitate commuting between neighbouring regions, which in turn may stimulate the regional integration of local labour markets. In Norway, the average travel distance to work has increased by more than 20 percent since the mid-1980s, while the average travel time has remained constant. The increase in commuting may be interpreted as a regional integration of labour markets, in response to improved accessibility and increased range. The increase in travel distances has been largest in the peripheral municipalities. Studies of two Norwegian infrastructure projects demonstrate that these investments have led to reduced travel time and increased commuting. This in turn results in a more varied and effective labour market, providing greater opportunities for employment and economic growth, and a better matching of skills in the labour market. In both cases there has been an increase in commuting flows, although to varying degrees. The variation may be explained by the composition of the industry structure and employment opportunities within the two regions. Increased spatial competition may result in redistributive rather than generative growth, especially with regards to the location of service activities. The paper draws on a statistical analysis of commuting flows, settlement and employment patterns at a low level of aggregation. A detailed analysis of commuting between basic statistical units for the years 2001 and 2007 reveals a commuting pattern that is not discernible when using data at the municipality level.