Wages and commuting: quasi-natural experiments' evidence from firms that relocate

Ismir Mulalic; Ninette Pilegaard; Jos N. van Ommeren

Wages and commuting: quasi-natural experiments' evidence from firms that relocate

Ismir Mulalic
, Ninette Pilegaard
, Jos N. van Ommeren

Technical University of Denmark
VU University Medical Centre

Research output: Contribution to conference › Paper › Research › peer-review

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

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@conference{5d6db6e9daa647e384172f0ef232556c,

title = "Wages and commuting: quasi-natural experiments' evidence from firms that relocate",

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{\textquoteright} 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.",

keywords = "Commuting, Wages",

author = "Ismir Mulalic and Ninette Pilegaard and \{van Ommeren\}, \{Jos N.\}",

year = "2010",

language = "English",

note = "Kuhmo-Nectar Conference 2010 ; Conference date: 05-07-2010 Through 09-07-2010",

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TY - CONF

T1 - Wages and commuting: quasi-natural experiments' evidence from firms that relocate

AU - Mulalic, Ismir

AU - Pilegaard, Ninette

AU - van Ommeren, Jos N.

N1 - Conference code: 5

PY - 2010

Y1 - 2010

N2 - 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.

AB - 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.

KW - Commuting

KW - Wages

M3 - Paper

T2 - Kuhmo-Nectar Conference 2010

Y2 - 5 July 2010 through 9 July 2010

ER -

Wages and commuting: quasi-natural experiments' evidence from firms that relocate

Abstract

Conference

Keywords

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