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Long-distance commuting and the effect of differentiated salary expectations in the commuters’ place of living on the wage obtained in the place of working

Author

Listed:
  • Manuel Pérez-Trujillo

    (Universidad Católica del Norte)

  • Mauricio Oyarzo Aguilar

    (Universidad de Concepción Campus Chillán)

  • Dusan Paredes Araya

    (Universidad Católica del Norte)

Abstract

Despite the efficiency produced by long-distance commuting (LDC) as an adjustment mechanism between local labor markets, the impact that it has on the equilibrium of labor markets has not been studied in depth. This paper uses the case of Chile, since in the last two decades the LDC has increased its importance as a strategy of labor mobility for workers in this country. We demonstrate, both theoretically and empirically, that LDC generates wage differences in the labor markets that receive commuters, as a function of the market equilibrium of these workers’ place of origin. These differences are not only related to labor productivity and/or employment, but also to the wage expectations of commuters in their place of origin.

Suggested Citation

  • Manuel Pérez-Trujillo & Mauricio Oyarzo Aguilar & Dusan Paredes Araya, 2020. "Long-distance commuting and the effect of differentiated salary expectations in the commuters’ place of living on the wage obtained in the place of working," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(2), pages 459-489, October.
    • Handle: RePEc:spr:anresc:v:65:y:2020:i:2:d:10.1007_s00168-020-00991-7
    DOI: 10.1007/s00168-020-00991-7
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    More about this item

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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