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Social returns to commuting in the Baltic states

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Hazans, Mihails ()

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Abstract

To what extent does commuting reduce regional wage disparities? This question is addressed by estimating two sets of earnings functions (based on 2000 LFS data for Estonia, Latvia and Lithuania): with geographical variables (like capital city, rural etc.) measured at the working place and at the place of residence. The main finding is that commuting has narrowed the ceteris paribus wage gap between capital city and rural areas by impressive 16 percentage points in Estonia and by 11 percentage points in Latvia, while the gap between capital and other cities has been reduced by 9 percentage points in both countries. In Lithuania gains from commuting are modest (3 percentage points) and go exclusively to residents of small cities. In the case of Latvia data allowed to estimate also effect of the distance between capital city and working place on wages, as well as individual returns to commuting in terms of the distance between living place and working place.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p232.

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Date of creation: Aug 2002
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Handle: RePEc:wiw:wiwrsa:ersa02p232

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  5. Zenou, Yves, 2000. "Urban unemployment, agglomeration and transportation policies," Journal of Public Economics, Elsevier, vol. 77(1), pages 97-133, July. [Downloadable!] (restricted)
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  6. Zax, Jeffrey S. & Kain, John F., 1991. "Commutes, quits, and moves," Journal of Urban Economics, Elsevier, vol. 29(2), pages 153-165, March. [Downloadable!] (restricted)
  7. Jan K. Brueckner & Hyun-A Kim, 2001. "Land Markets in the Harris-Todaro Model: A New Factor Equilibrating Rural-Urban Migration," Journal of Regional Science, Blackwell Publishing, vol. 41(3), pages 507-520. [Downloadable!] (restricted)
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  9. Wrede, Matthias, 2001. "Should Commuting Expenses Be Tax Deductible? A Welfare Analysis," Journal of Urban Economics, Elsevier, vol. 49(1), pages 80-99, January. [Downloadable!] (restricted)
  10. Timothy, Darren & Wheaton, William C., 2001. "Intra-Urban Wage Variation, Employment Location, and Commuting Times," Journal of Urban Economics, Elsevier, vol. 50(2), pages 338-366, September. [Downloadable!] (restricted)
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  13. Daniel McFadden & Kenneth Train, 2000. "Mixed MNL models for discrete response," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 15(5), pages 447-470. [Downloadable!]
  14. R Cervero & K-L Wu, 1997. "Polycentrism, commuting, and residential location in the San Francisco Bay area," Environment and Planning A, Pion Ltd, London, vol. 29(5), pages 865-886, May. [Downloadable!] (restricted)
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  18. Richard Arnott, 1997. "Economic Theory and the Spatial Mismatch Hypothesis," Boston College Working Papers in Economics 390., Boston College Department of Economics. [Downloadable!]
  19. So, Kim S & Orazem, Peter F & Otto, Daniel M, 2001. " The Effects of Housing Prices, Wages, and Commuting Time on Joint Residential and Job Location Choices," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 83(4), pages 1036-48, November. [Downloadable!] (restricted)
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  20. Zax, Jeffrey S., 1991. "Compensation for commutes in labor and housing markets," Journal of Urban Economics, Elsevier, vol. 30(2), pages 192-207, September. [Downloadable!] (restricted)
  21. Maarten van Ham & Clara H Mulder & Pieter Hooimeijer, 2001. "Spatial flexibility in job mobility: macrolevel opportunities and microlevel restrictions," Environment and Planning A, Pion Ltd, London, vol. 33(5), pages 921-940, May. [Downloadable!] (restricted)
  22. Khan, Romana & Orazem, Peter & Otto, Daniel, 2002. "Deriving Empirical Definitions of Spatial Labor Markets: The Roles of Competing versus Complementary Growth," Staff General Research Papers 5205, Iowa State University, Department of Economics.
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