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

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Authors:
  • Mulalic, Ismir ;
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    Orcid logo0000-0002-5525-6391
    Department of Transport, Technical University of Denmark
  • N. Van Ommeren, Jos ;
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    Vrije Universiteit Amsterdam
  • Pilegaard, Ninette
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    Orcid logo0000-0001-5136-5753
    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

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