| Summary: | Work travel is an important alternative to out-migration in rural areas characterized by a limited range of jobs. The size of local labour markets is determined in part by geography and tradition, but advances in transportation have the potential to move people and communities closer together and transform established mindscapes. In Iceland, the dispersion of the rural population, a challenging terrain, and unpredictable weather has made road infrastructure improvements a key component in regional development strategies. A large-scale tunnel project completed in 2010 was intended to strengthen a vulnerable rural area on the northern coast and expand the urban labour market of the regional centre of Akureyri. Traffic surveys and resident surveys conducted before and after the tunnels show a substantial increase in 17–34km work travel between rural communities. Work travel 61–77km to and from the regional centre did however not increase. The average length of work travel has shortened but the increase in commuting yielded a net increase in total km commuted. The tunnels increased work travel irrespective of age and education, but increased work travel by women with children in the household in particular. The results suggest that large-scale road infrastructure improvements may substantially strengthen rural labour markets within a driving distance of 15–30min, but may not extend the edge of micropolitan labour markets 45–60min from an urban centre of less than 20 thousand inhabitants. Road tunnel; Commuting; Work travel; Labour market; Rural Iceland;
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