Jobs/housing balance and employer-based travel demand management program returns to scale: Evidence from Los Angeles

Research on environmental justice and social inclusion suggests that high-income wage earners may have better job access due to their greater choices in both housing and transportation markets. This study compares the jobs/housing balance and mode choice of different groups of employees of a large employer (27,113 employees) and those of the “reference groups” from comparable employees working for smaller employers in Los Angeles. Based on spatial and statistical analyses, this paper finds the following:a)Across all employee groups, a better jobs/housing balance was accompanied by higher income, as was likelihood to patronize Travel Demand Management (TDM) programs.b)Employees from the large employer had more options for carpooling and thus drove alone less, even after controlling overall housing stock, residential location, annual income, and/or commute time.c)Across all employee groups, good jobs/housing balance did not necessarily bring about green mode choice.d)Comprehensive TDM measures by the large employer significantly reduced employees’ dependence on driving, even in a region where autocommuting dominates. However, these measures were costly to implement.e)Different employee groups favor different TDM programs, and the patterns are marked by income.The above findings suggest that shared or consolidated TDM and housing programs, which pool smaller employers, might better promote green mode choice. Participating employers may also negotiate better deals for program implementation when these programs involve third-party transit agencies and contractors.