Using complex input-output (I-O) model, the finding by the University of Massachusetts Political Economy Research Institute (PERI) indicates that bicycle infrastructure projects create approximately 11 jobs per $1 million spending whereas road-only projects create about 8 jobs for the same amount.
Alex Goldschmidt of Smart Growth America gives two possible explanations behind this phenomenon:
"Bicycle and pedestrian projects use fewer physical materials, so a greater proportion of the project budget can be spent on wages and salaries," he says. What's more, the role of supply chain also comes into play as the materials for bike infrastructure projects are usually purchased in-state. This, in turn, creates more local jobs and provides a greater support for the state economy.