Stop That Train, I’m Starving: Impacts of Closing Rural Rail Stations
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I exploit Côte d’Ivoire’s 2011 post-presidential-election crisis as a natural experiment to document the effects of closing rural rail stations. Using nationally representative household microdata, I find sizable declines in per-capita spending and consumption in rural southern areas where stations were closed relative to adjacent areas that were never served by rail. These declines coincide with a reallocation of workers from higher-paying nonfarm sectors into lower-productivity family work. I use a Roy model with unobservable heterogeneous returns and sectoral mobility costs to rationalize these findings and recover marginal nonfarm returns. I show that the welfare gains from reopening rural rail stations exceed operating costs, though net gains diminish as coverage expands. Spatially targeted reopenings of a subset of the closed stations generate nearly the same welfare gains as full network restoration, implying a benefit–cost ratio almost twice as high.