Wage Compensation for Long Distance Commuters in Chile

Dusan Paredes and Soto Juan
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Soto Juan: Departamento de Economía, Universidad Católica del Norte, Chile
Authors registered in the RePEc Author Service: Juan Soto-Diaz

No 56, Documentos de Trabajo en Economia y Ciencia Regional from Universidad Catolica del Norte, Chile, Department of Economics

Abstract: This paper suggests that long distance commuters in Chile obtain a wage compensation of 8.7% on average when they commute among functional areas using data for 2009, while previous work identifies an average compensation of 19% using counties. Also, we estimated a higher compensation per hour. This estimated wage gradient is 6.1% per commuted hour and it is robust in several econometric specifications, a significantly higher number than the 0.06% previously reported in Jamett and Paredes (2013). Long distance commuters receive different wage compensation along the education distribution. Workers with a high education earn a higher wage compensation. This research suggests that the labor market alone does not seem to present evidence, which foreshadows a reduction in LDC flows. Moreover, this paper displays how the labor market offers workers higher incentives in order to maintain the flow of long distance commuting.

Keywords: Long Distance Commuting; Wage Compensation; Functional Areas (search for similar items in EconPapers)
JEL-codes: J61 R23 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2015-02, Revised 2015-02
New Economics Papers: this item is included in nep-geo, nep-lab and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:cat:dtecon:dt201502

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