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Following Your Job

Martijn Smit ()

No 1718, Papers in Evolutionary Economic Geography (PEEG) from Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography

Abstract: Evolutionary economic geography has awoken an interest in the question how regions can attract new human capital. One method is to attract migration firms, who will bring (part of) their existing employees. These people can then attract or generate new jobs (Hoogstra, van Dijk, & Florax, 2005). In this paper, we study the mobility of employees when their firm decides to move: do they stick with their employer or not? And if they do, do they commute or not? Finally, we link the decision to commute longer distances to the availability of a company car. We use microdata on individual firms and employees to test whether employees choose to follow their firm to another region. We control for personal and job characteristics. We find that having a company car is not correlated with the decision to stay with or to leave the current firm, but those who have one are less likely to move house, as long as the employee has a wage in the top quartile, or lives in the urban areas of the Randstad with their stressed housing market. Employees who already experienced long commutes before their employer moved are not influenced by the presence of a company car.

JEL-codes: J61 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo, nep-mig and nep-ure
Date: 2017-07, Revised 2017-07
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http://econ.geo.uu.nl/peeg/peeg1718.pdf Version July 2017 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:egu:wpaper:1718

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