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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.
Original language | English |
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Publication date | 2013 |
Number of pages | 25 |
Publication status | Published - 2013 |
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Dive into the research topics of 'Wages and commuting: quasi-natural experiments' evidence from firms that relocate'. Together they form a unique fingerprint.Activities
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Wages and commuting: quasi-natural experiments' evidence from firms that relocate
Mulalic, I. (Invited speaker)
7 Nov 2013Activity: Talks and presentations › Conference presentations