Commuting in the Baltic States: Patterns, determinants and gains
AbstractTo what extent does commuting reduce urban – rural and 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 location variables (like capital city, rural etc.) measured at the workplace and at the place of residence. The main finding is that in Estonia and Latvia commuting has significantly narrowed the ceteris paribus wage gap between capital city and rural areas, as well as between capital and other cities. In Lithuania only residents of urban areas in the capital county manage to catch up significantly with the capital, while overall urban-rural gap remains almost unchanged. So different outcomes are explained by country-specific skills composition of rural – urban commuting flows and wage discrimination against rural residents in Lithuanian urban markets. Individual gains to rural – urban or inter-city commuting (both with and without correcting to selectivity) are uniformly big in Latvia but on average negligible in Lithuanian urban areas. --
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Bibliographic InfoPaper provided by ZEI - Center for European Integration Studies, University of Bonn in its series ZEI Working Papers with number B 02-2003.
Date of creation: 2003
Date of revision:
commuting; earnings functions; treatment effects model; wage disparities; Baltic States; ethnic minority;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
- C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
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