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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 05-088/3.
Date of creation: 26 Sep 2005
Date of revision:
Contact details of provider:
Web page: http://www.tinbergen.nl
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
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- 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.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antoine Maartens (+31 626 - 160 892)).
If references are entirely missing, you can add them using this form.