Transport-Related Fringe Benefits

Jos van Ommeren (), Arno van der Vlist and Peter Nijkamp

No 02-063/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: This discussion paper resulted in a publication in the 'Journal of Regional Science' , 2006, 46(3), 493-506.

Fringe benefits of various kinds have become an essential element of modern labour market mechanisms. Firms offer transport-related fringe benefits such as transport subsidies (company cars, travel and parking subsidies) and relocation subsidies to job applicants. The spatial implications of these fringe benefits have hardly received any systematic attention thus far. The present paper addresses this largely unexplored issue. Using information from a survey on firms' recruitment behaviour in the UK, this paper demonstrates that the applicants' journey-to-work time induces firms to offer various transport-related fringe benefits to job applicants. The implications of these transport-related fringe benefits for commuting and relocation are rather distinct. Transport subsidies discourage applicants, whereas relocation subsidies induce applicants to move closer to the workplace. We interpret the results as evidence that employers offer transport-related fringe benefits either to reduce the length of the journey to work or to compensate employees for the incurred commuting costs.

Keywords: fringe benefits; company car; residential mobility (search for similar items in EconPapers)
JEL-codes: J33 J41 R29 (search for similar items in EconPapers)
Date: 2002-06-28
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20020063

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