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Spatial Search and Commuting with Asymmetric Changes of the Wage Distribution

In: The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?

Author

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  • Alisher Aldashev

    (Kazakh-British Technical University)

Abstract

This paper contributes to job-search literature by analysing commuter behaviour in the presence of asymmetric changes in the wage distribution. Job search theory predicts that reservation wages increase with the mean and mean-preserving spread of the wage distribution. However, changing dispersion while holding the mean constant implies symmetric stretching or compression of the wage distribution in both tails, which is not likely to be the case when confronted with the real data. The presented model predicts that the commuter stream and the reservation wage increase with the median-preserving spread in the right tail and decrease with the median-preserving spread in the left tail in the destination. The empirical part, based on German commuter data, confirms the theory’s predictions.

Suggested Citation

  • Alisher Aldashev, 2010. "Spatial Search and Commuting with Asymmetric Changes of the Wage Distribution," AIEL Series in Labour Economics, in: Floro Ernesto Caroleo & Francesco Pastore (ed.), The Labour Market Impact of the EU Enlargement. A New Regional Geography of Europe?, edition 1, chapter 9, pages 227-245, AIEL - Associazione Italiana Economisti del Lavoro.
    • Handle: RePEc:ail:chapts:04-09
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    Cited by:

    1. Shoichi Sasaki, 2017. "Empirical analysis of the effects of increasing wage inequalities on marriage behaviors in Japan," Discussion Papers 1705, Graduate School of Economics, Kobe University.
    2. Sasaki, Shoichi, 2017. "Empirical analysis of the effects of increasing wage inequalities on marriage behaviors in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 46(C), pages 27-42.
    3. Shoichi Sasaki, 2014. "An empirical analysis of the effect of increasing male wage inequality on female marriage behavior in Japan," Discussion Papers 1401, Graduate School of Economics, Kobe University.

    More about this item

    Keywords

    commuting; job search; median; median-preserving spread; negative binomial regression. Wage distribution; zero-inflated models.;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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