WAGES AND COMMUTING: QUASI-NATURAL EXPERIMENTS’ EVIDENCE FROM FIRMS THAT RELOCATE

Ismir Mulalic; Jos N. Van Ommeren; Ninette Pilegaard

doi:10.1111/ecoj.12074

WAGES AND COMMUTING: QUASI-NATURAL EXPERIMENTS’ EVIDENCE FROM FIRMS THAT RELOCATE

Authors:

Mulalic, Ismir ;
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0000-0002-5525-6391
Department of Transport, Technical University of Denmark
N. Van Ommeren, Jos ;
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Vrije Universiteit Amsterdam
Pilegaard, Ninette
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0000-0001-5136-5753
Department of Transport, Technical University of Denmark

DOI:

10.1111/ecoj.12074

Abstract:

We examine individual-level compensating differentials for commuting distance in a quasi-natural experiment setting by examining how wages respond to changes in commuting distance induced by firm relocations. This set-up enables us to test for the relevance of job search frictions within labour market models. Due to the quasi-experimental set-up, we are able to avoid a range of endogeneity issues. We demonstrate that a 1 km increase in commuting distance induces an almost negligible wage increase in the year after the relocation but a more substantial wage increase of about 0.15% three years later.

Type:

Journal article

Language:

English

Published in:

Economic Journal, 2014, Vol 124, Issue 579

Main Research Area:

Science/technology

Publication Status:

Published

Review type:

Peer Review

Submission year:

2014

Scientific Level:

Scientific

ID:

258376104

WAGES AND COMMUTING: QUASI-NATURAL EXPERIMENTS’ EVIDENCE FROM FIRMS THAT RELOCATE

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