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How Far and For How Much? Evidence on Wages and Potential Travel-to-Work Distances from a Survey of the Economically Inactive

Author

Listed:
  • Latreille, Paul L.

    () (University of Sheffield)

  • Blackaby, David H.

    () (Swansea University)

  • Murphy, Philip D.

    () (Swansea University)

  • O'Leary, Nigel C.

    () (Swansea University)

  • Sloane, Peter J.

    () (Swansea University)

Abstract

The U.K. government has recently committed itself to an ambitious 80 per cent employment rate target. Recognising that achieving this aspiration will require significant numbers of the economically inactive to (re-)engage with the labour market, the government has enacted various policy reforms seeking to encourage those on the fringes of the labour market to do so. The present paper uses unique survey data to examine three factors relevant to these issues, namely the desire to work, minimum acceptable wages and the distance the inactive are prepared to travel to work for a given minimum acceptable wage offer.

Suggested Citation

  • Latreille, Paul L. & Blackaby, David H. & Murphy, Philip D. & O'Leary, Nigel C. & Sloane, Peter J., 2006. "How Far and For How Much? Evidence on Wages and Potential Travel-to-Work Distances from a Survey of the Economically Inactive," IZA Discussion Papers 1976, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp1976
    as

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    References listed on IDEAS

    as
    1. van den Berg, Gerard J & Gorter, Cees, 1997. "Job Search and Commuting Time," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 269-281, April.
    2. Mark E. Schweitzer, 2003. "Ready, willing, and able? measuring labour availability in the UK," Working Paper 0303, Federal Reserve Bank of Cleveland.
    3. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, vol. 51(6), pages 1661-1676, November.
    4. Stephen R. G. Jones, 1988. "The Relationship Between Unemployment Spells and Reservation Wages as a Test of Search Theory," The Quarterly Journal of Economics, Oxford University Press, vol. 103(4), pages 741-765.
    5. Thomas Aronsson & Kurt Brannas, 1996. "Household Work Travel Time," Regional Studies, Taylor & Francis Journals, vol. 30(6), pages 541-548.
    6. Blau, David M, 1991. "Search for Nonwage Job Characteristics: A Test of the Reservation Wage Hypothesis," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 186-205, April.
    7. R.W. McQuaid, 2001. "Unemployed Job Seeker Attitudes towards Potential Travel-to-Work Times," Growth and Change, Wiley Blackwell, vol. 32(3), pages 355-368.
    8. Rouwendal, Jan, 1999. "Spatial job search and commuting distances," Regional Science and Urban Economics, Elsevier, vol. 29(4), pages 491-517, July.
    9. Narendranathan, Wiji & Nickell, Stephen, 1985. "Modelling the process of job search," Journal of Econometrics, Elsevier, vol. 28(1), pages 29-49, April.
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    Cited by:

    1. Roberts, Jennifer & Hodgson, Robert & Dolan, Paul, 2011. "“It's driving her mad”: Gender differences in the effects of commuting on psychological health," Journal of Health Economics, Elsevier, vol. 30(5), pages 1064-1076.
    2. Tabasso, D, 2009. "Temporary Contracts and Monopsony Power in the UK Labour Market," Economics Discussion Papers 8938, University of Essex, Department of Economics.

    More about this item

    Keywords

    economic inactivity; reservation wages; travel-to-work distances;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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