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Commuting time decisions for two-worker households in Korea

Sung Hyo Hong, Bun Song Lee and John McDonald

Regional Science and Urban Economics, 2018, vol. 69, issue C, 122-129

Abstract: This study tests for the effect of earning potential on commuting time of working husbands and wives in two-worker households in South Korea. The theoretical result obtained by Alonso (1964) and Muth (1969) is that a higher wage has offsetting effects on commuting by increasing both the demand for housing and the time cost of commuting. This study places these offsetting effects in a model of bid-rent for a two-worker household that extends the model presented by White (1977). The basic finding is that an increase in the wage rate increases the worker's commuting time by a small statistically significant amount. The result holds for both husbands and wives. The net effect of a higher wage on commuting time is positive and small. As other studies have found, commuting time is greater for husbands than for wives.

Keywords: Commuting time; Residential location decision; Spousal gap in commuting time (search for similar items in EconPapers)
JEL-codes: R10 (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:eee:regeco:v:69:y:2018:i:c:p:122-129