Will You Follow Your Job to the Suburbs? Commuting, Locational Amenities and Wages in a Large Metro Area

Gregory Verdugo () and Malak Kandoussi ()
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Gregory Verdugo: Université Paris-Saclay, UEVE - Université d'Évry-Val-d'Essonne, OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po
Malak Kandoussi: UM6P - Université Mohammed VI Polytechnique = Mohammed VI Polytechnic University [Ben Guerir]

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Abstract: We examine how relocations from the center to the suburbs of establishments employing mainly skilled workers affect the composition and wages of their employees. Using data from the Paris metro area, we find that these relocations increase average commuting time by 19%. In response, firms compensate highly paid workers with 10 to 20% of their hourly wage per additional hour of commuting. Lower-paid workers receive no compensation and are more likely to leave. Consistent with workers valuing locational amenities, we find little increase in separation and no wage adjustment for increased commuting time when establishments relocate to more attractive neighborhoods.

Keywords: Labor Supply; Commuting time; Firm's location (search for similar items in EconPapers)
Date: 2025-10-22
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-05391709v1
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