Stress That Doesn't Pay: The Commuting Paradox
AbstractPeople spend a lot of time commuting and often find it a burden. According to economics, the burden of commuting is chosen when compensated either on the labor or on the housing market so that individuals’ utility is equalized. However, in a direct test of this strong notion of equilibrium, we find that people with longer commuting time report systematically lower subjective well-being. Additional empirical analyses do not find institutional explanations of the empirical results that commuters systematically incur losses. We discuss several possibilities of an extended model of human behavior able to explain this ‘commuting paradox’.
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Bibliographic InfoPaper provided by Institute for Empirical Research in Economics - University of Zurich in its series IEW - Working Papers with number 151.
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location theory; commuting; compensating variation; subjective well-being;
Other versions of this item:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-10-18 (All new papers)
- NEP-BEC-2004-10-18 (Business Economics)
- NEP-CBE-2003-05-29 (Cognitive & Behavioural Economics)
- NEP-GEO-2004-10-18 (Economic Geography)
- NEP-LAB-2003-05-29 (Labour Economics)
- NEP-URE-2003-05-29 (Urban & Real Estate Economics)
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