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Commuting, Spatial Search and Labour Market Bargaining

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  • Jos van Ommeren

    ()

  • Piet Rietveld

    () (Vrije Universiteit Amsterdam)

Abstract

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.

Suggested Citation

  • Jos van Ommeren & Piet Rietveld, 2002. "Commuting, Spatial Search and Labour Market Bargaining," Tinbergen Institute Discussion Papers 02-039/3, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20020039
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    References listed on IDEAS

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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.
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    5. Hamilton, Bruce W, 1989. "Wasteful Commuting Again," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1497-1504, December.
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    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.
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    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, March.
    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.
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    Cited by:

    1. 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.
    2. Nathalie Havet & Carole Brunet, 2009. "Propriété immobilière et déqualifications dans l'emploi," Revue Française d'Économie, Programme National Persée, vol. 24(1), pages 121-155.
    3. Carole Brunet & Jean-Yves Lesueur, 2003. "Do homeowners stay unemployed longer ? A French micro-econometric study," Post-Print halshs-00178576, HAL.
    4. Tilahun, Nebiyou & Levinson, David M., 2013. "An Agent-Based Model of Origin Destination Estimation (ABODE)," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 6(1), pages 73-88.

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