Employer Transit Subsidy Study: Executive Summary

This study found that the larger the transit subsidy offered, the more employees were induced to become transit riders and the more transit-only commuting increased. The increase in transit-only commuting came from a reduction in auto-only and auto-and-transit commuting. Transit subsidy acceptance and effectiveness can be dampened by factors such as the availability of cheap parking, or greater distance between the workplace and rapid transit, leading to some variability in outcomes. Transit ridership and subsidy acceptance were associated with various positive self-reported improvements to workers’ quality of life, including their health, stress levels and commute predictability. These positive quality of life outcomes were achieved without the transit subsidy having any observed effects on work schedules, turnover and performance.