The effect of socio-economic factors on the value of time in commuting to work

It is important to specify accurately the dollar value assigned to time savings, since up to eighty percent of the benefits estimated to accrue from improvements in transportation systems are associated with savings in travel time. In this paper the economic theory of consumer choice is utilized to structure a model that is used to estimate how Value of Time (VOT) measures vary with community-related variables.Parameters for this theoretical model are empirically estimated using data from transportation surveys conducted in Ithaca and Syracuse, New York and Amherst, Massachusetts. The results confirm the validity of the theoretical model and suggest that leisure time, travel cost, and household income level, as well as community population, are important determinants of the marginal value of time. These models are particularly suited for transferring data results obtained in one community to another, thereby saving survey costs, since the resulting VOT estimates are based solely on underlying socio-economic variables and community characteristics that are known for most localities. The methodology is also useful for estimating different VDT's for particular population subgroups, like the elderly, which may be the focus of a particular transportation project.