We investigate the impact of commuter train access on individual labor market outcomes. Our study considers the introduction of a commuter train on a pre-existing railroad in Sweden, considerably decreasing commuting times by public transit and hence increasing access to the regional employment...

We develop a standard search-matching model in which mobility costs are so high that it is too costly for workers to relocate when a change in their employment status occurs. We show that, in equilibrium, wages increase with distance to jobs and commuting costs because firms need to compensate...