Abstract
We examine the causal effect of commuting distance on workers' wages in a quasi-natural experiments setting using information on all workers in Denmark. We account for endogeneity of distance by using changes in distance that are due to firms’ relocations. A one kilometre increase in commuting distance induces a wage increase of about 0.42%, suggesting an hourly commuting time compensation of 49% of the hourly net wage. Our findings are consistent with wage bargaining theory and due to the experimental setup we are able to exclude many competing explanations of the wage-distance relationship.
| Original language | English |
|---|---|
| Publication date | 2010 |
| Publication status | Published - 2010 |
| Event | Kuhmo-Nectar Conference 2010 - University of Valencia, Valencia, Spain Duration: 5 Jul 2010 → 9 Jul 2010 Conference number: 5 |
Conference
| Conference | Kuhmo-Nectar Conference 2010 |
|---|---|
| Number | 5 |
| Location | University of Valencia |
| Country/Territory | Spain |
| City | Valencia |
| Period | 05/07/2010 → 09/07/2010 |
Keywords
- Commuting
- Wages