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Transport‐Related Fringe Benefits: Implications For Moving And The Journey To Work

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  • Jos Van Ommeren
  • Arno Van Der Vlist
  • Peter Nijkamp

Abstract

ABSTRACT Firms offer compensation not only through wages, but also offer transport‐related fringe benefits such as transport benefits (company cars, travel, and parking benefits) and relocation benefits to job applicants. We argue that these benefits are not randomly offered to employees, but depend on the job applicants' commuting costs. The firms' choice between these benefits affects the workers' incentive to move their residence closer to the workplace. Using information on firms' recruitment behavior in the United Kingdom, this paper shows empirically that the applicants' journey‐to‐work time induces firms to offer these benefits to job applicants. The implications of transport‐related fringe benefits for commuting and relocation are found to be rather distinct. Transport benefits make employees less sensitive to the costs of commuting, whereas relocation benefits induce employees to move closer to the workplace.

Suggested Citation

  • Jos Van Ommeren & Arno Van Der Vlist & Peter Nijkamp, 2006. "Transport‐Related Fringe Benefits: Implications For Moving And The Journey To Work," Journal of Regional Science, Wiley Blackwell, vol. 46(3), pages 493-506, August.
    • Handle: RePEc:bla:jregsc:v:46:y:2006:i:3:p:493-506
    DOI: 10.1111/j.1467-9787.2006.00448.x
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    References listed on IDEAS

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    1. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
    2. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
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    Cited by:

    1. DE BORGER, Bruno & GLAZER, Amihai, 2010. "Subsidizing consumption to signal quality of workers," Working Papers 2010016, University of Antwerp, Faculty of Business and Economics.
    2. Zenou, Yves, 2009. "Urban search models under high-relocation costs. Theory and application to spatial mismatch," Labour Economics, Elsevier, vol. 16(5), pages 534-546, October.
    3. Lissitsa, Sabina & Chachashvili-Bolotin, Svetlana & Bokek-Cohen, Ya'arit, 2017. "Digital skills and extrinsic rewards in late career," Technology in Society, Elsevier, vol. 51(C), pages 46-55.
    4. Maat, Kees & Timmermans, Harry J.P., 2009. "Influence of the residential and work environment on car use in dual-earner households," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(7), pages 654-664, August.
    5. Galit Cohen-Blankshtain, 2008. "Institutional constraints on transport policymaking: the case of company cars in Israel," Transportation, Springer, vol. 35(3), pages 411-424, May.
    6. Nijland, Linda & Dijst, Martin, 2015. "Commuting-related fringe benefits in the Netherlands: Interrelationships and company, employee and location characteristics," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 358-371.
    7. Amnon Frenkel & Edward Benedit & Sigal Kaplan, 2011. "Residential choice of knowledge-workers in a 'startup metropolis': the role of amenities, workplace and lifestyle," ERSA conference papers ersa11p208, European Regional Science Association.
    8. Tscharaktschiew, Stefan & Reimann, Felix, 2021. "On employer-paid parking and parking (cash-out) policy: A formal synthesis of different perspectives," Transport Policy, Elsevier, vol. 110(C), pages 499-516.
    9. Boitier, Vincent, 2018. "The role of labor market structure in urban sprawl," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 83-98.
    10. Macharis, Cathy & De Witte, Astrid, 2012. "The typical company car user does not exist: The case of Flemish company car drivers," Transport Policy, Elsevier, vol. 24(C), pages 91-98.
    11. De Borger, Bruno & Wuyts, Bart, 2011. "The tax treatment of company cars, commuting and optimal congestion taxes," Transportation Research Part B: Methodological, Elsevier, vol. 45(10), pages 1527-1544.
    12. Zenou, Yves, 2007. "High Relocation Costs in Search-Matching Models: Theory and Application to Spatial Mismatch," IZA Discussion Papers 2739, Institute of Labor Economics (IZA).

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