Parchet, Raphaël Barisone, Lorenzo 2025 This paper studies the effects of traffic exposure on the income sorting of heterogeneous residents. Exploiting the quasi-experimental setting of the introduction of a new road plan (PVP) implemented in a medium-sized Swiss city (Lugano), I use a structural model for residential location choices to estimate the effect of traffic exposure’s changes on housing rental prices, population relocation, and income-based residential segregation. I find that low-income renters migrate to neighborhoods with increased traffic levels, while high-income ones are more likely to cluster in less-trafficked areas. This mechanism is consistent with lower traffic exposure leading to higher housing prices, disproportionately affecting low-income households who spend a higher share of their income on housing. The model framework allows me to build counterfactual simulations; thus, I analyze the impact of a segregation-reductive traffic management policy: the local government can reduce residential segregation by deviating traffic in neighborhoods with a concentration of high-income households. application/pdf https://n2t.net/ark:/12658/srd1333883 https://susi.usi.ch/global/documents/333883 https://susi.usi.ch/documents/333883/files/2025ECO008.pdf eng info:eu-repo/semantics/altIdentifier/ark/12658/srd1333883 info:eu-repo/semantics/altIdentifier/urn/urn:nbn:ch:rero-006-123498 info:eu-repo/semantics/openAccess License undefined Traffic Income sorting Relocation Housing prices Residential segregation info:eu-repo/classification/udc/33 Regional and urban dynamics : essays on the spatial distribution of households and firms http://purl.org/coar/resource_type/c_db06