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Title: The Effect of Car Ownership on Employment:

Citation Type: Miscellaneous

Publication Year: 2010

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Abstract: Various economic theories suggest that one reason for low rates of employment among low-skill, inner-city residents is that they are spatially separated from jobs that have moved out to the suburbs. To test this, I exploit variation in state Dprior approval insurance rate regulation which has been shown to suppress auto insurance prices, thereby decreasing the cost of owning a car. I find that rate regulation increases the proportion of multi-car households among married couples with children. In those households, I find that the additional car in the household encourages mothers to decrease their labor supply while their husbands increase their labor supply. One possible explanation of this result is that second cars are stronger complements to time spent in home production (and especially childrearing) than they are to time spent in the labor market.

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Authors: Bee, C Adam

Publisher: University of Notre Dame

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Other

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