[Journal:] Estudios de Economía [ISSN:] 0718-5286 [Volume:] 40 [Year:] 2013 [Issue:] 2 [Pages:] 179-210
The importance of Long Distance Commuting (LDC) has increased as a result of the continuous reduction of transport costs. This paper formalizes the relationship between LDC and wage through a job search model where a commuting time variable is included. The paper proposes that LDC be compensated in wage and be increasing in distance, and that the regions which receive more commuters pay a higher premium wage. The results suggest an average premium of 19% for LDC. However, the applicable rate depends on the workplace location of each commuter, and thus it might be as high as 40%.
long distance commuting Coarsened Exact Matching spatial wage differentials