Research and analysis

Transport analysis guidance and employment parameters

Reviews criteria for appraising the employment effects on proposed transport infrastructure investments.

• From: Department for Transport
• Published: 31 October 2024

Documents

A review of TAG A2.3 employment parameters: labour supply elasticity and labour tax wedges

PDF, 1.09 MB, 70 pages

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Details

Section A2.3 of the transport analysis guidance (TAG) outlines the 4 core parameters the Department of Transport (DfT) uses for employment appraisal within transport investment. 

This research reviews these parameters, which include:

• labour supply elasticity
• tax wedges on the wages of new workers
• tax wedges on the wages of new workers, including savings by not paying unemployment benefits
• existing workers moving to more or less productive jobs

TAG provides information on the role of transport modelling and appraisal and how the transport appraisal process supports the development of investment decisions to support a business case.

Published 31 October 2024