Identification of 'Wasteful Commuting' using Search Theory
AbstractIn this paper, we employ search theory as a micro-economic foundation for the wasteful commuting hypothesis. It is argued that the commute of the self-employed is the result of a search process for vacant workplaces, whereas employees search for vacant jobs through space. Because the arrival rate of workplaces is much higher than the arrival rate of jobs, the self-employed essentially may minimise the commute, whereas employees accept jobs with a longer commute. In the empirical analysis, the extent of the ‘wasteful commuting’ is identified by estimating the difference in the commute of employees and self-employed individuals with fixed workplaces. Our estimates indicate that about 40 to 50% of the observed commute may be considered ‘wasteful’ due to job search imperfections. We reject alternative hypotheses why the self-employed have a shorter commute (self-selection of not working from home, different residence locations). In line with the theoretical model, the excess commute is shown to be less in areas with a higher urban density.
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Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 05-088/3.
Date of creation: 26 Sep 2005
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wasteful commuting; search; mobility; self-employed;
Other versions of this item:
- Jos Van Ommeren & J. Willemijn Van der Straaten, 2005. "Identification of ‘wasteful commuting’ using search theory," ERSA conference papers ersa05p335, European Regional Science Association.
- R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
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- Tscharaktschiew, Stefan & Hirte, Georg, 2010.
"How does the household structure shape the urban economy?,"
Regional Science and Urban Economics,
Elsevier, vol. 40(6), pages 498-516, November.
- Tscharaktschiew, Stefan & Hirte, Georg, 2009. "How does the household structure shape the urban economy?," Dresden Discussion Paper Series in Economics 07/09, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
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