Accessibility to Employment and Productivity in the Metropolitan Region of São Paulo

Abstract

The hypothesis of spatial mismatch between workers and job opportunities identifies several mechanisms through which restricted physical access to jobs can result in unsatisfactory labor market outcomes. Thus, this study aims to analyze the relationship between accessibility to employment and wages in the labor market in the Metropolitan Region of São Paulo. As there are endogeneity problems between the residential location and the measurement of work opportunities, the study used a subsample (young adults who live with their parents) as a way of alleviating the endogeneity problems. The article used two databases: the Census and the RAIS. The main results found show that there is a relationship  between two different measures of accessibility to jobs and wages, that is, the increase in physical access to the CBD and sub-centers increases worker productivity in the RMSP.