Wages and Commuting: Quasi-natural Experiments' Evidence from Firms that Relocate

Ismir Mulalic; Ninette Pilegaard; Jos N. Van Ommeren

Wages and Commuting: Quasi-natural Experiments' Evidence from Firms that Relocate

Ismir Mulalic, Ninette Pilegaard, Jos N. Van Ommeren

Research output: Contribution to conference › Paper › Research › peer-review

Abstract

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. A one kilometre increase in commuting distance induces a wage increase of about 0.42%, suggesting an hourly commuting time compensation of 49% of the hourly net wage. Our findings are consistent with wage bargaining theory and due to the experimental setup we are able to exclude many competing explanations of the wage-distance relationship.

Original language	English
Publication date	2010
Publication status	Published - 2010
Externally published	Yes
Event	The 5th Kuhmo-Nectar Conference 2010 - University of Valencia, Valencia, Spain Duration: 5 Jul 2010 → 9 Jul 2010 Conference number: 5

Conference

Conference	The 5th Kuhmo-Nectar Conference 2010
Number	5
Location	University of Valencia
Country/Territory	Spain
City	Valencia
Period	05/07/2010 → 09/07/2010

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Cite this

@conference{1dd2cf6f893b401292ca04d6ff0b184a,

title = "Wages and Commuting: Quasi-natural Experiments' Evidence from Firms that Relocate",

abstract = "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{\textquoteright} relocations. A one kilometre increase in commuting distance induces a wage increase of about 0.42%, suggesting an hourly commuting time compensation of 49% of the hourly net wage. Our findings are consistent with wage bargaining theory and due to the experimental setup we are able to exclude many competing explanations of the wage-distance relationship.",

author = "Ismir Mulalic and Ninette Pilegaard and {Van Ommeren}, {Jos N.}",

year = "2010",

language = "English",

note = "The 5th Kuhmo-Nectar Conference 2010 ; Conference date: 05-07-2010 Through 09-07-2010",

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TY - CONF

T1 - Wages and Commuting

T2 - The 5th Kuhmo-Nectar Conference 2010

AU - Mulalic, Ismir

AU - Pilegaard, Ninette

AU - Van Ommeren, Jos N.

N1 - Conference code: 5

PY - 2010

Y1 - 2010

N2 - 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. A one kilometre increase in commuting distance induces a wage increase of about 0.42%, suggesting an hourly commuting time compensation of 49% of the hourly net wage. Our findings are consistent with wage bargaining theory and due to the experimental setup we are able to exclude many competing explanations of the wage-distance relationship.

AB - 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. A one kilometre increase in commuting distance induces a wage increase of about 0.42%, suggesting an hourly commuting time compensation of 49% of the hourly net wage. Our findings are consistent with wage bargaining theory and due to the experimental setup we are able to exclude many competing explanations of the wage-distance relationship.

M3 - Paper

Y2 - 5 July 2010 through 9 July 2010

ER -