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Transport-Related Fringe Benefits

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Author Info

  • Jos van Ommeren

    ()
    (Vrije Universiteit Amsterdam)

  • Arno van der Vlist

    ()
    (Vrije Universiteit Amsterdam)

  • Peter Nijkamp

    ()
    (Vrije Universiteit Amsterdam)

Abstract

Fringe benefits of various kinds have become an essential element of modern labour market mechanisms. Firms offer transport-related fringe benefits such as transport subsidies (company cars, travel and parking subsidies) and relocation subsidies to job applicants. The spatial implications of these fringe benefits have hardly received any systematic attention thus far. The present paper addresses this largely unexplored issue. Using information from a survey on firms' recruitment behaviour in the UK, this paper demonstrates that the applicants' journey-to-work time induces firms to offer various transport-related fringe benefits to job applicants. The implications of these transport-related fringe benefits for commuting and relocation are rather distinct. Transport subsidies discourage applicants, whereas relocation subsidies induce applicants to move closer to the workplace. We interpret the results as evidence that employers offer transport-related fringe benefits either to reduce the length of the journey to work or to compensate employees for the incurred commuting costs.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 02-063/3.

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Date of creation: 28 Jun 2002
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Handle: RePEc:dgr:uvatin:20020063

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Web page: http://www.tinbergen.nl

Related research

Keywords: fringe benefits; company car; residential mobility;

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References

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  1. Small, Kenneth A. & Song, Shunfeng, 1992. ""Wasteful" Commuting: A Resolution," University of California Transportation Center, Working Papers qt5142n2ts, University of California Transportation Center.
  2. Zax, Jeffrey S., 1991. "Compensation for commutes in labor and housing markets," Journal of Urban Economics, Elsevier, vol. 30(2), pages 192-207, September.
  3. Hamilton, Bruce W, 1989. "Wasteful Commuting Again," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 97(6), pages 1497-1504, December.
  4. Ommeren, Jos van & Berg, Gerard J. van den & Gorter, Cees, 1998. "Estimating the marginal willingness to pay for commuting," Serie Research Memoranda 0046, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  5. Hamilton, Bruce W, 1982. "Wasteful Commuting," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 90(5), pages 1035-51, October.
  6. Timothy Smeeding, 1983. "The Size Distribution of Wage and Nonwage Compensation: Employer Cost versus Employee Value," NBER Chapters, in: The Measurement of Labor Cost, pages 237-286 National Bureau of Economic Research, Inc.
  7. Weinberg, Daniel H. & Friedman, Joseph & Mayo, Stephen K., 1981. "Intraurban residential mobility: The role of transactions costs, market imperfections, and household disequilibrium," Journal of Urban Economics, Elsevier, vol. 9(3), pages 332-348, May.
  8. Shoup, Donald C. & Willson, Richard W., 1992. "Employer-Paid Parking: The Problem and Proposed Solutions," University of California Transportation Center, Working Papers qt2x6240jr, University of California Transportation Center.
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Citations

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Cited by:
  1. Bruno De Borger & Amihai Glazer, 2010. "Subsidizing Consumption to Signal Quality of Workers," Working Papers 101101, University of California-Irvine, Department of Economics.
  2. Zenou, Yves, 2007. "High Relocation Costs in Search-Matching Models: Theory and Application to Spatial Mismatch," IZA Discussion Papers 2739, Institute for the Study of Labor (IZA).
  3. De Borger, Bruno & Wuyts, Bart, 2011. "The tax treatment of company cars, commuting and optimal congestion taxes," Transportation Research Part B: Methodological, Elsevier, vol. 45(10), pages 1527-1544.
  4. Galit Cohen-Blankshtain, 2008. "Institutional constraints on transport policymaking: the case of company cars in Israel," Transportation, Springer, Springer, vol. 35(3), pages 411-424, May.

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