Local labour market effects of transport investments

Improvements in infrastructure may facilitate commuting between neighbouring regions, which in turn may stimulate the regional inte-gration of local labour markets. In Norway, the average travel time to work has increased, which may be interpreted as a regional inte-gration of labour markets. The increase has been largest in the peripheral municipalities. Studies of three Norwegian infrastructure investments demonstrate how the 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. The regional integration of labour markets may therefore ideally serve three aims: reducing unemployment, improving access to labour, and securing a decentralised settlement structure.