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How Germany's High-Speed Rail Made Workers Commute Backwards (And Why It Matters)

Daniel F. Heuermann, Johannes F. Schmieder

Think building a high-speed rail just makes it easier for people to live in suburbs and work in big cities? Think again. This video breaks down a groundbreaking study by Daniel F. Heuermann and Johannes F. Schmieder, published as an NBER working paper. Using Germany's ICE expansion as a natural experiment, they found the opposite: workers started living in cities and commuting outwards to smaller towns for jobs. Why? Because high-speed rail lets you enjoy city life without needing a city job. We’ll walk through the shocking 70% travel time cuts, how political deals (not economic need) decided where stations went, and the 0.25% increase in commuters for every 1% time saved. This isn't just about trains—it's about rewriting the rules of where we live and work.

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