Why do firms reimburse job applicants´ relocation costs?
AbstractWe 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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Bibliographic InfoPaper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p516.
Date of creation: Aug 2002
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Other versions of this item:
- Jos van Ommeren & Piet Rietveld, 2002. "Why do Firms reimburse Job Applicants' Relocation Costs?," Tinbergen Institute Discussion Papers, Tinbergen Institute 02-065/3, Tinbergen Institute.
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