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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Malak Kandoussi: University of Evry

No 18232, IZA Discussion Papers from Institute of Labor Economics (IZA)

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: firm’s location; commuting time; labor supply (search for similar items in EconPapers)
JEL-codes: D13 J16 J18 (search for similar items in EconPapers)
Date: 2025-10
New Economics Papers: this item is included in nep-lab, nep-tre and nep-ure
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Working Paper: Will You Follow Your Job to the Suburbs? Commuting, Locational Amenities and Wages in a Large Metro Area (2025)
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