Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/333671 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 18232
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We examine how relocations from the center to the suburbs of establishments employing mainly skilled workers affect the composition and wages of their employees. Using data from the Paris metro area, we find that these relocations increase average commuting time by 19%. In response, firms compensate highly paid workers with 10 to 20% of their hourly wage per additional hour of commuting. Lower-paid workers receive no compensation and are more likely to leave. Consistent with workers valuing locational amenities, we find little increase in separation and no wage adjustment for increased commuting time when establishments relocate to more attractive neighborhoods.
Subjects: 
labor supply
commuting time
firm's location
JEL: 
J16
D13
J18
Document Type: 
Working Paper

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