Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86578
Authors: 
Ommeren, Jos Van
der Straaten, Willemijn Van
Year of Publication: 
2005
Series/Report no.: 
Tinbergen Institute Discussion Paper 05-088/3
Abstract: 
In this paper, we employ search theory as a micro-economic foundation for the wasteful commuting hypothesis. It is argued that the commute of the self-employed is the result of a search process for vacant workplaces, whereas employees search for vacant jobs through space. Because the arrival rate of workplaces is much higher than the arrival rate of jobs, the self-employed essentially may minimise the commute, whereas employees accept jobs with a longer commute. In the empirical analysis, the extent of the ‘wasteful commuting’ is identified by estimating the difference in the commute of employees and self-employed individuals with fixed workplaces. Our estimates indicate that about 40 to 50% of the observed commute may be considered ‘wasteful’ due to job search imperfections. We reject alternative hypotheses why the self-employed have a shorter commute (self-selection of not working from home, different residence locations). In line with the theoretical model, the excess commute is shown to be less in areas with a higher urban density.
Subjects: 
wasteful commuting
search
mobility
self-employed
JEL: 
R20
J64
Document Type: 
Working Paper

Files in This Item:
File
Size
225.29 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.