Ethnic diversity and transport poverty

Abstract

Transport poverty is a growing concern in many developed countries. However, research on the determinants of transport poverty is relatively scant. We contribute to the debate on the determinants of transport poverty by presenting the first study to empirically examine the effects of ethnic diversity on transport poverty. Using 12 waves of longitudinal data from the Household, Income and Labour Dynamics in Australia (HILDA) survey, covering the period 2005–2016, we find a positive association between ethnic diversity and transport poverty. This result is robust to endogeneity, alternative ways of measuring ethnic diversity and transport poverty. We show that trust is an important channel through which ethnic diversity influences transport poverty. Thus, policies aimed at fostering tolerance, trust and inclusion in diverse communities are important to mitigate the negative effects of ethnic diversity on desirable socioeconomic outcomes.