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Commuting and labour supply revisited

Author

Listed:
  • Eva Gutiérrez-i-Puigarnau

    (CPB Bureau for Economic Policy Analysis, The Netherlands)

  • Jos N van Ommeren

    (VU University Amsterdam, The Netherlands)

Abstract

According to theory, road pricing may reduce welfare when labour supply is negatively distorted by an income tax. This effect particularly occurs when commuting costs reduce labour supply. We examine the hypothesis that commuting costs reduce labour supply in the short-run. In particular, we estimate the effect of commuting time on labour supply in the UK. We account for endogeneity of commuting time by employing exogenous changes in commuting time resulting from firm relocations and changes in infrastructure. Our results cast doubt on the idea that increases in commuting cost reduce labour supply, at least in the short-run. More precisely, we find that females’ labour supply reacts positively to or is unaffected by increases in commuting time, whereas males’ labour supply is unaffected.

Suggested Citation

  • Eva Gutiérrez-i-Puigarnau & Jos N van Ommeren, 2015. "Commuting and labour supply revisited," Urban Studies, Urban Studies Journal Limited, vol. 52(14), pages 2551-2563, November.
    • Handle: RePEc:sae:urbstu:v:52:y:2015:i:14:p:2551-2563
    DOI: 10.1177/0042098014550452
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    References listed on IDEAS

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    Cited by:

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    4. Tao, Yinhua & van Ham, Maarten & Petrović, Ana & Ta, Na, 2023. "A household perspective on the commuting paradox: Longitudinal relationships between commuting time and subjective wellbeing for couples in China," Transportation Research Part A: Policy and Practice, Elsevier, vol. 170(C).

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