Wages and Commuting: Quasi-Natural Experiments' Evidence from Firms that relocate
Ismir Mulalic (),
Jos van Ommeren () and
Additional contact information
Ninette Pilegaard: Technical University of Denmark
No 10-093/3, Tinbergen Institute Discussion Papers from Tinbergen Institute
This discussion paper resulted in a publication in the 'Economic Journal' , 2014, 124(579), 1086-1105.
We examine the causal effect of commuting distance on workers' wages in a quasi-natural experiments setting using information on all workers in Denmark. We account for endogeneity of distance by using changes in distance that are due to firms' relocations. For the range of commuting distances where income tax reductions associated with commuting do not apply, one kilometre increase in commuting distance induces a wage increase of about 0.42%, suggesting an hourly compensation of about half of the hourly net wage. Our findings are consistent with wage bargaining theory and suggest a bargaining power parameter of about 0.50. Due to the experimental setup we are able to exclude many competing explanations of the wage-distance relationship.
Keywords: Bargaining theory; Wages; Commuting (search for similar items in EconPapers)
JEL-codes: J22 R41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed
Downloads: (external link)
Journal Article: Wages and Commuting: Quasi‐natural Experiments' Evidence from Firms that Relocate (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20100093
Access Statistics for this paper
More papers in Tinbergen Institute Discussion Papers from Tinbergen Institute Contact information at EDIRC.
Bibliographic data for series maintained by Tinbergen Office +31 (0)10-4088900 ().