How Commuting Time Affects Employees’ Income in China’s Urbanization Process

With the deepening of China’s urbanization, the commuting time of employees is increasing. Much evidence in Western developed countries supports the positive relationship between commuting time and income, but the relationship has not been verified in China. To determine whether the relationship is in effect in China, this paper constructs a theoretical model. From the perspective of long-term equilibrium analysis, the best choice for individuals is a hard-work strategy. The increase in long-term commuting time will eventually lead to individuals working harder, thus increasing personal income. The OP model established based on the survey data of Beijing residents’ time allocation in 2011, 2016, and 2021 also verified the positive impact of commuting time on employee income, which is more significant for groups with longer commuting time and shorter leisure time. The innovation of this paper has three parts. First, the long-term dynamic decision-making game was introduced into the personal choice model to reveal the long-term impact of commuting on income. Second, we verified the positive impact of commuting time on income in China. Third, we discussed the policy implications of increasing commuting time for improving urban operation efficiency in China’s urbanization process. Finally, it is suggested that the government should reasonably plan the urban functional structure and increase the construction of public transport in infrastructure, and enterprises should explore the staggered commuting system.