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Why do Firms reimburse Job Applicants' Relocation Costs?

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Author Info
Jos van Ommeren () (Vrije Universiteit Amsterdam)
Piet Rietveld () (Vrije Universiteit Amsterdam)

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Abstract

We develop an equilibrium job search model in which employees incur commuting costs, and residential relocation is costly. We demonstrate that firms partially compensate workers for the incurred relocation costs to avoid paying compensation for commuting costs.

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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 02-065/3.

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Date of creation: 28 Jun 2002
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Handle: RePEc:dgr:uvatin:20020065

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

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