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Toward Estimating the Incidence of Journey-to-Work Costs

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  • Hirschel Kasper

    (Oberlin College, Ohio)

Abstract

The purpose of this paper is to estimate the extent to which the daily travel to work costs are passed forward to employers in the form of higher wages. The incidence is estimated from a sample of Glasgow, Scotland workers who relocated their residences within the city. It was found that the elasticity of wages with respect to travel costs is greater than zero for both men and women and, perhaps, as much as one for men. Since the relocation within the city led to substantial job change, it would seem that wages should be expected to adjust to changes in policy areas such as transport and land zoning which make it cheaper or more expensive for workers to get to employment opportunities.

Suggested Citation

  • Hirschel Kasper, 1983. "Toward Estimating the Incidence of Journey-to-Work Costs," Urban Studies, Urban Studies Journal Limited, vol. 20(2), pages 197-208, May.
    • Handle: RePEc:sae:urbstu:v:20:y:1983:i:2:p:197-208
    DOI: 10.1080/00420988320080331
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    References listed on IDEAS

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    1. Kasper, H, 1973. "Measuring the Labour Market Costs of Housing Dislocation," Scottish Journal of Political Economy, Scottish Economic Society, vol. 20(2), pages 85-106, June.
    2. John F. Kain & John M. Quigley, 1975. "Introduction to "Housing Markets and Racial Discrimination: A Microeconomic Analysis"," NBER Chapters, in: Housing Markets and Racial Discrimination: A Microeconomic Analysis, pages 1-8, National Bureau of Economic Research, Inc.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. Gera, Surendra & Kuhn, Peter, 1980. "Job location and the journey-to-work: An empirical analysis," Socio-Economic Planning Sciences, Elsevier, vol. 14(2), pages 57-65.
    5. Martin Ravallion, 1979. "A Note on Intra-Urban Wage Differentials1," Urban Studies, Urban Studies Journal Limited, vol. 16(2), pages 213-215, June.
    6. Danziger, Sheldon & Weinstein, Michael, 1976. "Employment location and wage rates of poverty-area residents," Journal of Urban Economics, Elsevier, vol. 3(2), pages 127-145, April.
    7. McGregor, Alan, 1980. "Employment Instability and Unemployment," The Manchester School of Economic & Social Studies, University of Manchester, vol. 48(1), pages 17-38, March.
    8. John F. Kain & John M. Quigley, 1975. "Housing Markets and Racial Discrimination: A Microeconomic Analysis," NBER Books, National Bureau of Economic Research, Inc, number kain75-1, March.
    9. Wales, Terence J., 1978. "Labour supply and commuting time : An empirical study," Journal of Econometrics, Elsevier, vol. 8(2), pages 215-226, October.
    10. John F. Kain & John M. Quigley, 1975. "Racial Discrimination in Urban Housing Markets," NBER Chapters, in: Housing Markets and Racial Discrimination: A Microeconomic Analysis, pages 56-91, National Bureau of Economic Research, Inc.
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    Cited by:

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    2. John Ermisch, 1987. "A Partial Equilibrium Model of the Location of Economic Activity in a Metropolitan Area," Urban Studies, Urban Studies Journal Limited, vol. 24(2), pages 103-108, April.
    3. Jos van Ommeren & Arno van der Vlist & Peter Nijkamp, 2002. "Transport-Related Fringe Benefits," Tinbergen Institute Discussion Papers 02-063/3, Tinbergen Institute.
    4. Donald Houston, 2005. "Employability, Skills Mismatch and Spatial Mismatch in Metropolitan Labour Markets," Urban Studies, Urban Studies Journal Limited, vol. 42(2), pages 221-243, February.
    5. 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.
    6. Van Ommeren, Jos & Rietveld, Piet, 2005. "The commuting time paradox," Journal of Urban Economics, Elsevier, vol. 58(3), pages 437-454, November.

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