Concentration Versus Re-Matching? Evidence About the Locational Effects of Commuting Costs
AbstractUsing administrative employer-employee data from Germany, I exploit two reductions of tax breaks for commuting in 2003/4 and 2006/7 to estimate commuting costs' effect on the decision to switch job and move house. Standard theory predicts that higher commuting costs should lead to increased concentration in urban centers. However, I find that re-matching of existing jobs and houses to reduce commuting distances is much more prevalent in the data. With these estimates I calculate the effect of a complete abolition of the tax breaks on overall travel distance, fuel usage, greenhouse gas emissions, the tax base, and the de-population of the countryside.
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Date of creation: May 2013
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Work/residence location choice; commuting costs; environmental effects of tax policy; employer-employee data;
Find related papers by JEL classification:
- R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ACC-2013-05-22 (Accounting & Auditing)
- NEP-ALL-2013-05-22 (All new papers)
- NEP-EUR-2013-05-22 (Microeconomic European Issues)
- NEP-LAB-2013-05-22 (Labour Economics)
- NEP-URE-2013-05-22 (Urban & Real Estate Economics)
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