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Search Theory and Commuting Behavior

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  • Jan Rouwendal

Abstract

This paper argues that search theory is a useful addition to the way economists and geographers have approached the study of commuting behavior. This is illustrated by showing that introduction of a spatial element into the standard model of job search leads to the prediction of critical isochrones. Moreover, in the context of an urban economy with decentralized employment, the spatial search model predicts excess commuting. Search theory also suggests that regression toward the mean may play a confusing role in data describing the development of commutes over time, such as has been used in recent empirical work. Finally, the paper develops a simple spatial equilibrium search model in which employers set their wages optimally and searchers determine their reservation wages optimally in mutually consistent ways. The spatial element is crucial for the existence of such an equilibrium in which reservation wages of all searchers and wages set by all employers are identical. Copyright 2004 Gatton College of Business and Economics, University of Kentucky..

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Bibliographic Info

Article provided by Gatton College of Business and Economics, University of Kentucky in its journal Growth and Change.

Volume (Year): 35 (2004)
Issue (Month): 3 ()
Pages: 391-418

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Handle: RePEc:bla:growch:v:35:y:2004:i:3:p:391-418

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  1. David Levinson & Ajay Kumar, 1994. "The Rational Locator: Why Travel Times Have Remained Stable," Working Papers 199402, University of Minnesota: Nexus Research Group.
  2. Small, Kenneth A & Song, Shunfeng, 1992. ""Wasteful" Commuting: A Resolution," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 888-98, August.
  3. van Ommeren, Jos & Rietveld, Piet & Nijkamp, Peter, 1997. "Commuting: In Search of Jobs and Residences," Journal of Urban Economics, Elsevier, vol. 42(3), pages 402-421, November.
  4. Rouwendal, Jan, 1999. "Spatial job search and commuting distances," Regional Science and Urban Economics, Elsevier, vol. 29(4), pages 491-517, July.
  5. Jan Rouwendal & Arno van der Vlist, 2002. "A Dynamic Model of Commutes," Tinbergen Institute Discussion Papers 02-026/3, Tinbergen Institute.
  6. Rouwendal, Jan, 1998. "Search Theory, Spatial Labor Markets, and Commuting," Journal of Urban Economics, Elsevier, vol. 43(1), pages 1-22, January.
  7. Clark, William A. V. & Huang, Youqin & Withers, Suzanne, 2003. "Does commuting distance matter?: Commuting tolerance and residential change," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 199-221, March.
  8. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-73, May.
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Cited by:
  1. Stefan P.T. Groot & Henri L.F. de Groot & Paolo Veneri, 2012. "The Educational Bias in Commuting Patterns: Micro-Evidence for the Netherlands," Tinbergen Institute Discussion Papers 12-080/3, Tinbergen Institute.
  2. Karlström, Anders & Isacsson, Gunnar, 2009. "Is sick absence related to commuting travel time? - Swedish Evidence Based on the Generalized Propensity Score Estimator," Working Papers 2010:3, Swedish National Road & Transport Research Institute (VTI).
  3. Gunther Maier, 2009. "Spatial prices, search behavior and location," The Annals of Regional Science, Springer, vol. 43(1), pages 27-48, March.
  4. Roberts, Jennifer & Hodgson, Robert & Dolan, Paul, 2011. "“It's driving her mad”: Gender differences in the effects of commuting on psychological health," Journal of Health Economics, Elsevier, vol. 30(5), pages 1064-1076.
  5. Sandow, Erika & Westin, Kerstin, 2010. "The persevering commuter - Duration of long-distance commuting," Transportation Research Part A: Policy and Practice, Elsevier, vol. 44(6), pages 433-445, July.
  6. Dario Diodato & Anet Weterings, 2012. "The Resilience of Dutch Regions to Economic Shocks. Measuring the relevance of interactions among firms and workers," Papers in Evolutionary Economic Geography (PEEG) 1215, Utrecht University, Section of Economic Geography, revised Aug 2012.
  7. Stefan P.T. Groot & Henri L.F. de Groot & Paolo Veneri, 2012. "The Educational Bias in Commuting Patterns: Micro-Evidence for the Netherlands," Tinbergen Institute Discussion Papers 12-080/3, Tinbergen Institute.

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