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  • 1
    Santiago de Chile: Universidad de Chile, Departamento de Economía
    Publication Date: 2016-09-29
    Description: The importance of Long Distance Commuting (LDC) has increased as a result of the continuous reduction of transport costs. This paper formalizes the relationship between LDC and wage through a job search model where a commuting time variable is included. The paper proposes that LDC be compensated in wage and be increasing in distance, and that the regions which receive more commuters pay a higher premium wage. The results suggest an average premium of 19% for LDC. However, the applicable rate depends on the workplace location of each commuter, and thus it might be as high as 40%.
    Keywords: J61 ; R23 ; ddc:330 ; long distance commuting ; Coarsened Exact Matching ; spatial wage differentials
    Repository Name: EconStor: OA server of the German National Library of Economics - Leibniz Information Centre for Economics
    Language: Spanish
    Type: doc-type:article
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