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Shirking, Commuting and Labor Market Outcomes

  • Ross, Stephen L.

    (University of Connecticut)

  • Zenou, Yves

    ()

    (The Research Institute of Industrial Economics)

Recent theoretical work has examined the spatial distribution of unemployment using the efficiency wage model as the mechanism by which unemployment arises in the urban economy. This paper extends the standard efficiency wage model in order to allow for behavioral substitution between leisure time at home and effort at work. In equilibrium, residing at a location with a long commute affects the time available for leisure at home and therefore affects the trade-off between effort at work and risk of unemployment. This model implies an empirical relationship between expected commutes and labor market outcomes, which is tested using the metropolitan sample of the American Housing Survey. The empirical results suggest that shirking and leisure are complementary with the marginal benefit of shirking increasing with an individual's net time endowment.

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Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 627.

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Length: 43 pages
Date of creation: 13 Aug 2004
Date of revision:
Handle: RePEc:hhs:iuiwop:0627
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  1. Patrick Bayer & Stephen L. Ross & Giorgio Topa, 2005. "Place of Work and Place of Residence: Informal Hiring Networks and Labor Market Outcomes," Working Papers 927, Economic Growth Center, Yale University.
  2. Paul Chen & Per-Anders Edin, 2002. "Efficiency Wages and Industry Wage Differentials: A Comparison Across Methods of Pay," The Review of Economics and Statistics, MIT Press, vol. 84(4), pages 617-631, November.
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  7. Steve Gibbons, 2004. "The Costs of Urban Property Crime," Economic Journal, Royal Economic Society, vol. 114(499), pages F441-F463, November.
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  9. Petitte, Ryan A. & Ross, Stephen L., 1999. "Commutes, Neighborhood Effects, and Compensating Differentials: Revisited," Journal of Urban Economics, Elsevier, vol. 46(1), pages 1-24, July.
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  13. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455.
  14. Yongheng Deng & Stephen L. Ross & Susan M. Wachter, 2002. "Racial Differences in Homeownership: The Effect of Residential Location," Working papers 2002-05, University of Connecticut, Department of Economics.
  15. SMITH, Tony E. & ZENOU, Yves, 1996. "Dual Labor Markets, Urban Unemployment and Multicentric Cities," CORE Discussion Papers 1996018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  18. Zenou, Yves, 2002. "How Do Firms Redline Workers?," IZA Discussion Papers 607, Institute for the Study of Labor (IZA).
  19. Zax, Jeffrey S., 1991. "Compensation for commutes in labor and housing markets," Journal of Urban Economics, Elsevier, vol. 30(2), pages 192-207, September.
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  22. Brueckner, Jan & Zenou, Yves, 2000. "Space And Unemployment: The Labour-Market Effects Of Spatial Mismatch," CEPR Discussion Papers 2397, C.E.P.R. Discussion Papers.
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  26. Bruce A. Weinberg & Patricia B. Reagan & Jeffrey J. Yankow, 2004. "Do Neighborhoods Affect Hours Worked? Evidence from Longitudinal Data," Journal of Labor Economics, University of Chicago Press, vol. 22(4), pages 891-924, October.
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  29. Weinberg, Bruce A., 2000. "Black Residential Centralization and the Spatial Mismatch Hypothesis," Journal of Urban Economics, Elsevier, vol. 48(1), pages 110-134, July.
  30. Ross, Stephen & Yinger, John, 1995. "Comparative static analysis of open urban models with a full labor market and suburban employment," Regional Science and Urban Economics, Elsevier, vol. 25(5), pages 575-605, October.
  31. Ross, Stephen L., 1998. "Racial Differences in Residential and Job Mobility: Evidence Concerning the Spatial Mismatch Hypothesis," Journal of Urban Economics, Elsevier, vol. 43(1), pages 112-135, January.
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