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Commuting, Spatial Search and Labour Market Bargaining

Listed author(s):
  • Jos van Ommeren

    ()

  • Piet Rietveld

    ()

    (Vrije Universiteit Amsterdam)

We develop an equilibrium job search model in which employees incur endogenous commuting costs. This model leads to the following conclusions:1.Firms partially compensate workers for the incurred commuting costs.2.When workers have more bargaining power, they will receive less compensation for the incurred commuting costs.3.The average commuting costs are an increasing function of the productivity level of the workers, but a decreasing function of the unemployment benefit level.4.Given balanced growth, the average commuting costs are proportional to the average wage in the long run.5.Given balanced growth, the average commuting time is constant in the long run, but the average commuting distance and speed are increasing over time.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 02-039/3.

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Date of creation: 22 Apr 2002
Handle: RePEc:tin:wpaper:20020039
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  1. Simpson, Wayne, 1980. "A simultaneous model of workplace and residential location incorporating job search," Journal of Urban Economics, Elsevier, vol. 8(3), pages 330-349, November.
  2. 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.
  3. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
  4. Burgess, Simon & Profit, Stefan, 2001. "Externalities in the matching of workers and firms in ritain," Labour Economics, Elsevier, vol. 8(3), pages 313-333, June.
  5. Hamilton, Bruce W, 1989. "Wasteful Commuting Again," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1497-1504, December.
  6. Schafer, Andreas, 1998. "The global demand for motorized mobility," Transportation Research Part A: Policy and Practice, Elsevier, vol. 32(6), pages 455-477, August.
  7. Hamilton, Bruce W, 1982. "Wasteful Commuting," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 1035-1051, October.
  8. Jos van Ommeren & Gerard J. van den Berg & Cees Gorter, 2000. "Estimating the Marginal Willingness to Pay for Commuting," Journal of Regional Science, Wiley Blackwell, vol. 40(3), pages 541-563.
  9. Philippe Aghion & Peter Howitt, 1994. "Growth and Unemployment," Review of Economic Studies, Oxford University Press, vol. 61(3), pages 477-494.
  10. Madden, Janice Fanning, 1985. "Urban wage gradients: Empirical evidence," Journal of Urban Economics, Elsevier, vol. 18(3), pages 291-301, November.
  11. Holzer Harry J. & Ihlanfeldt Keith R. & Sjoquist David L., 1994. "Work, Search, and Travel among White and Black Youth," Journal of Urban Economics, Elsevier, vol. 35(3), pages 320-345, May.
  12. Rouwendal, Jan, 1998. "Search Theory, Spatial Labor Markets, and Commuting," Journal of Urban Economics, Elsevier, vol. 43(1), pages 1-22, January.
  13. Ihlanfeldt, Keith R., 1992. "Intraurban wage gradients: Evidence by race, gender, occupational class, and sector," Journal of Urban Economics, Elsevier, vol. 32(1), pages 70-91, July.
  14. Coles, Melvyn G & Smith, Eric, 1996. "Cross-Section Estimation of the Matching Function: Evidence from England and Wales," Economica, London School of Economics and Political Science, vol. 63(252), pages 589-597, November.
  15. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, January.
  16. Burda, Michael C. & Profit, Stefan, 1996. "Matching across space: Evidence on mobility in the Czech Republic," Labour Economics, Elsevier, vol. 3(3), pages 255-278, October.
  17. Jos van Ommeren, 1998. "On-the-Job Search Behavior: The Importance of Commuting Time," Land Economics, University of Wisconsin Press, vol. 74(4), pages 526-540.
  18. Mortensen, Dale T., 1994. "The cyclical behavior of job and worker flows," Journal of Economic Dynamics and Control, Elsevier, vol. 18(6), pages 1121-1142, November.
  19. Golob, Thomas F. & Beckmann, Martin J. & Zahavi, Yacov, 1981. "A utility-theory travel demand model incorporating travel budgets," Transportation Research Part B: Methodological, Elsevier, vol. 15(6), pages 375-389, December.
  20. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, vol. 69, pages 213-213.
  21. Sugden, Robert, 1980. "An application of search theory to the analysis of regional labour markets," Regional Science and Urban Economics, Elsevier, vol. 10(1), pages 43-51, March.
  22. Wales, Terence J., 1978. "Labour supply and commuting time : An empirical study," Journal of Econometrics, Elsevier, vol. 8(2), pages 215-226, October.
  23. Burgess, Simon & Profit, Stefan, 2001. "Externalities in the matching of workers and firms in Britain," LSE Research Online Documents on Economics 20130, London School of Economics and Political Science, LSE Library.
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