IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Knowledge-workers and the sustainable city: the travel consequences of car-related job-perks

  • Edward Bendit
  • Amnon Frenkel


  • Sigal Kaplan


Registered author(s):

    Attracting firms in knowledge and technology intensive (KTI) sectors is highly desired at both the national and the regional level as a powerful engine of economic growth. Due to fierce competition in KTI sectors and national taxation policies, KTI firms often attract high-quality employees by offering car-related job perks as additional incentives to wage. In Canada, car allowance is offered by 46% of the employers to attract highly-skilled workers. In Israel, 61% of knowledge-workers in the KTI sectors receive a company-car with respect to 16% of workers in other sectors. In the U.K., car-related job perks are offered by 18% of the employers. This study focuses on the impact of car-related job-perks on the travel behavior of knowledge-workers. The importance of this issue derives from the impact of the travel behavior of knowledge-workers on congested transportation networks in metropolitan areas, as knowledge-based economy tends to concentrate mainly in metropolitan regions. This study applies discrete choice models in order to analyze the impact of company-cars and car allowances (reimbursement of fuel and parking expenses) on commute and leisure travel of knowledge-workers. The analyzed data consist of 750 observations, retrieved from a revealed-preferences survey among KTI workers who work and reside in the Tel-Aviv metropolitan area in Israel. Results show that car-related job perks are associated with (i) high annual mileage, (ii) high propensity of using the car as main commute mode, (ii) long commute distances and travel times, (iii) high trip chaining frequency in commuting trips, and (iii) high frequency of long-distance weekend leisure trips. Result also show that KTI workers generally prefer the car or non-motorized transport modes over the bus system. These results suggest that the development of sustainable knowledge-based cities should consider (i) the replacement of car-related job perks by other incentives, (ii) the provision of pedestrian and cyclist friendly infrastructures, and (iii) public transport improvements.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p389.

    in new window

    Date of creation: Sep 2011
    Date of revision:
    Handle: RePEc:wiw:wiwrsa:ersa11p389
    Contact details of provider: Postal: Welthandelsplatz 1, 1020 Vienna, Austria
    Web page:

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Olof Johansson-Stenman, 2002. "Estimating individual driving distance by car and public transport use in Sweden," Applied Economics, Taylor & Francis Journals, vol. 34(8), pages 959-967.
    2. Colombo, Massimo G. & Delmastro, Marco, 2002. "How effective are technology incubators?: Evidence from Italy," Research Policy, Elsevier, vol. 31(7), pages 1103-1122, September.
    3. Galit Cohen-Blankshtain, 2008. "Institutional constraints on transport policymaking: the case of company cars in Israel," Transportation, Springer, vol. 35(3), pages 411-424, May.
    4. Otto Raspe & Frank Van Oort, 2006. "The Knowledge Economy and Urban Economic Growth," European Planning Studies, Taylor & Francis Journals, vol. 14(9), pages 1209-1234, May.
    5. Otto Raspe & Frank Oort, 2011. "Growth of new firms and spatially bounded knowledge externalities," The Annals of Regional Science, Springer, vol. 46(3), pages 495-518, June.
    6. Dafna Schwartz, 2006. "The Regional Location of Knowledge Based Economy Activities in Israel," The Journal of Technology Transfer, Springer, vol. 31(1), pages 31-44, 01.
    7. Graus, Wina & Worrell, Ernst, 2008. "The principal-agent problem and transport energy use: Case study of company lease cars in the Netherlands," Energy Policy, Elsevier, vol. 36(10), pages 3745-3753, October.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p389. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.