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Job mobility, residential mobility and commuting: A theoretical analysis using search theory

Author

Listed:
  • Piet Rietveld

    () (Department of Spatial Economics, Free University, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands)

  • Peter Nijkamp

    () (Department of Spatial Economics, Free University, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands)

  • Jos van Ommeren

    () (Centre for European HRM, School of Management, Cranfield University, Cranfield, Bedfordshire MK43 OAL, United Kingdom)

Abstract

The decision to move job and the decision to move residence are closely related dynamic discrete choices, as both moves involve a change of commuting distance. This suggests that labour and residential mobility are mutually dependent and should be simultaneously analysed, based on a theory which incorporates these dynamic decisions explicitly. In the present paper, we base our analysis on search theory and choose the point of departure that individuals maximise utility by moving through different labour market and housing market states, while taking into consideration that moving from one state to another is costly. Based on these assumptions, a search model is constructed and the optimality conditions are derived. One of main conclusions based on the search model is that the effect of factors which cause housing market imperfections (viz. the residential moving costs and the residence arrival rate) have ambiguous effects on he job acceptance and job search behaviour of employed individuals. For some interesting cases however, the effect of the residential moving costs on the job acceptance behaviour can be derived. In contrast, the effect of housing market imperfections on the labour market behaviour of nonemployed persons is determined. We find for example that housing policies which discourage nonemployed persons to move residence (e.g. housing subsidies) also decrease the probability of becoming employed and may therefore unintentionally increase the number of nonemployed persons.

Suggested Citation

  • Piet Rietveld & Peter Nijkamp & Jos van Ommeren, 2000. "Job mobility, residential mobility and commuting: A theoretical analysis using search theory," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(2), pages 213-232.
  • Handle: RePEc:spr:anresc:v:34:y:2000:i:2:p:213-232
    Note: Received: December 1997/Accepted: March 1999
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    Cited by:

    1. Yicheol Han & Stephan J. Goetz & Taegon Kim & JeongJae Lee, 2013. "Estimating Employment-Related Migration from Overlapping Migration and Commuting Networks," Growth and Change, Wiley Blackwell, vol. 44(3), pages 474-493, September.
    2. Sergii TROSHCHENKOV, 2016. "Return to Commuting Distance in Sweden," Departmental Working Papers 2016-08, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    3. K. Newbold, 2012. "Migration and regional science: opportunities and challenges in a changing environment," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 451-468, April.
    4. Kronenberg, Kristin & Carree, Martin, 2010. "Job and residential mobility in the Netherlands: the influence of human capital, household composition and location," MPRA Paper 25840, University Library of Munich, Germany.
    5. van Ham, Maarten & Williamson, Lee & Feijten, Peteke & Boyle, Paul, 2010. "Right to Buy… Time to Move? Investigating the Effect of the Right to Buy on Moving Behaviour in the UK," IZA Discussion Papers 5115, Institute for the Study of Labor (IZA).
    6. Rune Vejlin, 2013. "Residential Location, Job Location, and Wages: Theory and Empirics," LABOUR, CEIS, vol. 27(2), pages 115-139, June.
    7. Klaus Nowotny, 2011. "Commuting, Residence and Workplace Location Attractiveness and Local Public Goods," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2011(1), pages 109-136.
    8. Jos Van Ommeren & Michiel Van Leuvensteijn, 2005. "New Evidence of the Effect of Transaction Costs on Residential Mobility," Journal of Regional Science, Wiley Blackwell, vol. 45(4), pages 681-702.
    9. Michiel van Leuvensteijn & Pierre Koning, 2006. "The Effect of Home-Ownership on Labour Mobility in the Netherlands," Chapters,in: Labour Market Adjustments in Europe, chapter 6 Edward Elgar Publishing.
    10. Seung-Nam Kim, 2016. "Two traditional questions on the relationships between telecommuting, job and residential location, and household travel: revisited using a path analysis," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(2), pages 537-563, March.
    11. Piil Damm, Anna & Rosholm, Michael, 2005. "Employment Effects of Dispersal Policies on Refugee Immigrants: Theory," Working Papers 05-1, University of Aarhus, Aarhus School of Business, Department of Economics.
    12. Van Ommeren, Jos & Rietveld, Piet, 2005. "The commuting time paradox," Journal of Urban Economics, Elsevier, vol. 58(3), pages 437-454, November.
    13. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part II: Empirical Evidence," IZA Discussion Papers 925, Institute for the Study of Labor (IZA).
    14. repec:wfo:wstudy:35641 is not listed on IDEAS
    15. Anna Damm & Michael Rosholm, 2010. "Employment effects of spatial dispersal of refugees," Review of Economics of the Household, Springer, vol. 8(1), pages 105-146, March.
    16. Teresa Casey & Christian Dustmann, 2008. "Intergenerational Transmission of Language Capital and Economic Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 4660-4687.
    17. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part I: Theory," IZA Discussion Papers 924, Institute for the Study of Labor (IZA).
    18. Chaloupka, Christine & Kölbl, Robert & Loibl, Wolfgang & Molitor, Romain & Nentwich, Michael & Peer, Stefanie & Risser, Ralf & Sammer, Gerd & Schützhofer, Bettina & Seibt, Claus, 2015. "Nachhaltige Mobilität aus sozioökonomischer Perspektive – Diskussionspapier der Arbeitsgruppe "Sozioökonomische Aspekte" der ÖAW-Kommission "Nachhaltige Mobilität" (ITA-manu," ITA manu:scripts 15_02, Institute of Technology Assessment (ITA).
    19. Peter Huber & Klaus Nowotny, 2013. "Moving across Borders: Who is Willing to Migrate or to Commute?," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1462-1481, October.
    20. Raphael Bar-El, 2006. "Inter-regional labor market equilibrium: another pattern of spatial mismatch," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(2), pages 393-405, June.
    21. Piil Damm, Anna & Rosholm, Michael, 2005. "Employment Effects of Dispersal Policies on Refugee Immigrants: Empirical Evidence," Working Papers 04-20, University of Aarhus, Aarhus School of Business, Department of Economics.

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