Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/37131
Authors: 
Year of Publication: 
2010
Series/Report no.: 
Economics Discussion Papers No. 2010-21
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
Because rational individuals know that they cannot always get what they want, they are assumed to make appropriate adjustments. However, little is known about trade-off reasoning in labor market mobility decision making. The objective of this paper is to analyze the effect of commuting on the decision to voluntarily accept wage cuts. Application of German household data reveals that workers are more likely to accept lower wages when daily commuting expenses can be reduced. In other words, workers trade off amenities and monetary rewards when changing employers.
Subjects: 
Mobility
wage cut
quit
JEL: 
J24
J30
J62
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Working Paper

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