Grand Paris Express: impact on labour and housing markets

Société du Grand Paris has launched a series of academic projects aimed at informing investments in public infrastructure over the period 2012-2019 (€ 22.6 billion). In this context, the LIEPP obtained a research budget to examine two questions: the location of businesses on the one hand; the link between housing, jobs and land rent on the other hand. This three-year work began in the spring of 2014.

Two complementary projects have emerged to evaluate:

• the impact of Grand Paris Express on labour and housing markets;
• the impact of Grand Paris Express on the international attractiveness of Paris (more information).

Team members:

• Guillaume Chapelle (LIEPP)
• Etienne Wasmer (LIEPP)
• Pierre-Henri Bono (LIEPP)
• Florian Oswald (Department of Economie, Sciences Po)
• Camille Urvoy (Department of Economie/LIEPP)

Description

This project aims to study the socio-economic impact of the implementation of the Grand Paris Express, in other words, to study the effects of new transport infrastructures on the labor and housing markets. LIEPP team proposes a model of analysis of the relationships between the structure of rents in the agglomeration, the job creations and the equilibrium unemployment level. The originality of the model consists in taking into account the duality of housing market, thus more precisely representing the Parisian  agglomeration. The model is developed in the short term with stable population and in the long term with population that fits perfectly. Finally, the complementarity between urban transport policies and housing policies must be considered.

Publications

LIEPP Policy Brief "Impact du Grand Paris Express sur le marché du travail et le marché du logement" Guillaume Chapelle, Etienne Wasmer, and Pierre-Henri Bono, December 2017.

Rapport d'étape "Impact du Grand Paris Express sur le marché du travail et le marché du logement", Guillaume Chapelle, Etienne Wasmer, Pierre-Henri Bono, Florian Oswald, andCamille Urvoy, December 2017.

In the media

Article in Le Monde December 21, 2017: "Comment un réseau ferré peut-il créer 168 000 emplois ?"

For more information, see the poster "Le cas du Grand Paris" (juin 2016)