Why do Firms reimburse Job Applicants' Relocation Costs?

Jos van Ommeren () and Piet Rietveld

No 02-065/3, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: We develop an equilibrium job search model in which employees incur commuting costs, and residential relocation is costly. We demonstrate that firms partially compensate workers for the incurred relocation costs to avoid paying compensation for commuting costs.

Date: 2002-06-28
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Working Paper: Why do firms reimburse job applicants´ relocation costs? (2002)
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