Abstract
We measure benefits to households from Mumbai’s new Metro rail system. We estimate a commute mode choice model to value commute time savings in the short run and a housing choice model to value the improved commuting utility that households experience due to spatial sorting. Aggregate benefits from the Metro rail are over 10 times higher when spatial sorting occurs. In the short run women, college-educated workers, and workers with above median incomes experience higher benefits than their opposites. In the long run, households with lower incomes and assets and less than college education benefit more than their wealthier counterparts.