Wage payoffs and distance deterrence in the journey to work
In this paper we suggest a microeconomic model for how commuting flows relate to traveling distance in a two-region system. Commuting is the preferred choice of a worker whenever he can obtain an increase in wages greater than the cost of commuting. Our framework is based on an approach where workers apply for jobs according to a strategy that maximizes their expected payoffs (wages minus commuting costs). We also discuss the possibility of a systematic bias when actual traveling distances are represented by distances between city centers, ignoring intrazonal distances.
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Volume (Year): 38 (2004)
Issue (Month): 9 (November)
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