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Why do firms reimburse job applicants´ relocation costs?

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  • van Ommeren, Jos

    ()

  • Rietveld, Piet

    ()

Abstract

We develop an equilibrium job search model in which employees incur commuting costs, and residential relocation is costly. We demonstrate that firms partially compensate workers for the incurred relocation costs to avoid paying compensation for commuting costs.

Suggested Citation

  • van Ommeren, Jos & Rietveld, Piet, 2002. "Why do firms reimburse job applicants´ relocation costs?," ERSA conference papers ersa02p516, European Regional Science Association.
  • Handle: RePEc:wiw:wiwrsa:ersa02p516
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