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How Far and For How Much? Evidence on Wages and Potential Travel-to-Work Distances from a Survey of the Economically Inactive

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Author Info

  • Latreille, Paul L.

    ()
    (University of Sheffield)

  • Blackaby, David H.

    ()
    (Swansea University)

  • Murphy, Philip D.

    ()
    (Swansea University)

  • O'Leary, Nigel C.

    ()
    (Swansea University)

  • Sloane, Peter J.

    ()
    (Swansea University)

Abstract

The U.K. government has recently committed itself to an ambitious 80 per cent employment rate target. Recognising that achieving this aspiration will require significant numbers of the economically inactive to (re-)engage with the labour market, the government has enacted various policy reforms seeking to encourage those on the fringes of the labour market to do so. The present paper uses unique survey data to examine three factors relevant to these issues, namely the desire to work, minimum acceptable wages and the distance the inactive are prepared to travel to work for a given minimum acceptable wage offer.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1976.

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Length: 30 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:iza:izadps:dp1976

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Keywords: economic inactivity; reservation wages; travel-to-work distances;

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  1. Berg, G.J. van den & Gorter, C., 1996. "Job search and commuting time," Serie Research Memoranda, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics 0001, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  2. Thomas Aronsson & Kurt Brannas, 1996. "Household Work Travel Time," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 30(6), pages 541-548.
  3. Mark E Schweitzer, 2003. "Ready, willing, and able? Measuring labour availability in the UK," Bank of England working papers 186, Bank of England.
  4. Blau, David M, 1991. "Search for Nonwage Job Characteristics: A Test of the Reservation Wage Hypothesis," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 9(2), pages 186-205, April.
  5. Jones, Stephen R G, 1988. "The Relationship between Unemployment Spells and Reservation Wages as a Test of Search Theory," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 103(4), pages 741-65, November.
  6. Narendranathan, Wiji & Nickell, Stephen, 1985. "Modelling the process of job search," Journal of Econometrics, Elsevier, Elsevier, vol. 28(1), pages 29-49, April.
  7. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, Econometric Society, vol. 51(6), pages 1661-76, November.
  8. Rouwendal, Jan, 1999. "Spatial job search and commuting distances," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 29(4), pages 491-517, July.
  9. R.W. McQuaid, 2001. "Unemployed Job Seeker Attitudes towards Potential Travel-to-Work Times," Growth and Change, Gatton College of Business and Economics, University of Kentucky, Gatton College of Business and Economics, University of Kentucky, vol. 32(3), pages 355-368.
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Cited by:
  1. Domenico Tabasso, 2011. "Temporary Contract and Monopsony Power in the UK Labour Market," Melbourne Institute Working Paper Series, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne wp2011n16, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  2. Roberts, Jennifer & Hodgson, Robert & Dolan, Paul, 2011. "“It's driving her mad”: Gender differences in the effects of commuting on psychological health," Journal of Health Economics, Elsevier, Elsevier, vol. 30(5), pages 1064-1076.

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