Wage payoffs and distance deterrence in the journey to work

Paul Glenn, Inge Thorsen and Jan Ubøe

Transportation Research Part B: Methodological, 2004, vol. 38, issue 9, 853-867

Abstract: In this paper we suggest a microeconomic model for how commuting flows relate to traveling distance in a two-region system. Commuting is the preferred choice of a worker whenever he can obtain an increase in wages greater than the cost of commuting. Our framework is based on an approach where workers apply for jobs according to a strategy that maximizes their expected payoffs (wages minus commuting costs). We also discuss the possibility of a systematic bias when actual traveling distances are represented by distances between city centers, ignoring intrazonal distances.

Date: 2004
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