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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