Wage variations and commuting distance

Shift-share designs: theory and inference

El-Mehdi Aboulkacem and Clément Nedoncelle

Journal of Economic Geography, 2022, vol. 22, issue 5, 1097-1123

Abstract: We estimate the causal impact of wage variations on commuting distance of workers. We test whether higher wages across years lead workers to live further away from their working place. We use employer–employee data for the French Ile-de-France region (surrounding Paris), from 2003 to 2008, and we deal with the endogenous relation between income and commuting using an instrumental variable strategy. We estimate that increases in wages coming from exogenous exposure to trade activities lead workers to increase their commuting distance and to settle closer to the city of Paris historical center. Our results cast novel insights upon the causal mechanisms from wage to spatial allocation of workers.

Keywords: Commuting; wage; distance; trade (search for similar items in EconPapers)
JEL-codes: F6 R2 R4 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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Working Paper: Wage variations and commuting distance (2022)
Working Paper: Wage Variations and Commuting Distance (2022)
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