IDEAS home Printed from https://ideas.repec.org/a/eee/regeco/v38y2008i2p127-147.html
   My bibliography  Save this article

The effect of search imperfections on commuting behaviour: Evidence from employed and self-employed workers

Author

Listed:
  • van Ommeren, Jos N.
  • van der Straaten, J. Willemijn

Abstract

We aim to estimate the effect of search imperfections on the length of the average commute. We start from the assumption that the commute of the self-employed is the result of a search process for vacant workplaces, whereas employees search for vacant jobs. Because the arrival rate of workplaces is much higher than the arrival rate of jobs, the self-employed minimize the commute, whereas employees may have to accept jobs with a longer commute. In the empirical analysis, the extent of the 'wasteful' or 'excess commuting' is identified by estimating the difference in the commute of employees and self-employed individuals. Our estimates indicate that about 40 to 60% of the observed commute may be considered 'excess' due to search imperfections. We reject a range of alternative hypotheses as to why the self-employed have a shorter commute than employees (self-selection of not working from home, preference for residence and workplace locations, characteristics of workers which are difficult to observe).

Suggested Citation

  • van Ommeren, Jos N. & van der Straaten, J. Willemijn, 2008. "The effect of search imperfections on commuting behaviour: Evidence from employed and self-employed workers," Regional Science and Urban Economics, Elsevier, vol. 38(2), pages 127-147, March.
  • Handle: RePEc:eee:regeco:v:38:y:2008:i:2:p:127-147
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0166-0462(08)00004-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pierre Cahuc & Fabien Postel-Vinay & Jean-Marc Robin, 2006. "Wage Bargaining with On-the-Job Search: Theory and Evidence," Econometrica, Econometric Society, vol. 74(2), pages 323-364, March.
    2. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173, December.
    3. Wasmer, Etienne & Zenou, Yves, 2002. "Does City Structure Affect Job Search and Welfare?," Journal of Urban Economics, Elsevier, vol. 51(3), pages 515-541, May.
    4. Alois Stutzer & Bruno S. Frey, 2008. "Stress that Doesn't Pay: The Commuting Paradox," Scandinavian Journal of Economics, Wiley Blackwell, vol. 110(2), pages 339-366, June.
    5. Small, Kenneth A & Song, Shunfeng, 1992. ""Wasteful" Commuting: A Resolution," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 888-898, August.
    6. Holzer Harry J. & Ihlanfeldt Keith R. & Sjoquist David L., 1994. "Work, Search, and Travel among White and Black Youth," Journal of Urban Economics, Elsevier, vol. 35(3), pages 320-345, May.
    7. Jan Rouwendal & Piet Rietveld, 1994. "Changes in Commuting Distances of Dutch Households," Urban Studies, Urban Studies Journal Limited, vol. 31(9), pages 1545-1557, November.
    8. Kang‐Rae Ma & David Banister, 2006. "Excess Commuting: A Critical Review," Transport Reviews, Taylor & Francis Journals, vol. 26(6), pages 749-767, May.
    9. van den Berg, Gerard J, 1992. "A Structural Dynamic Analysis of Job Turnover and the Costs Associated with Moving to Another Job," Economic Journal, Royal Economic Society, vol. 102(414), pages 1116-1133, September.
    10. repec:hal:spmain:info:hdl:2441/dc0ckec3fcb29ms9850c12h1p is not listed on IDEAS
    11. Edward P. Lazear & Robert L. Moore, 1984. "Incentives, Productivity, and Labor Contracts," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(2), pages 275-296.
    12. Manning, Alan, 2003. "The real thin theory: monopsony in modern labour markets," Labour Economics, Elsevier, vol. 10(2), pages 105-131, April.
    13. Gerard J. van den Berg & Geert Ridder, 1998. "An Empirical Equilibrium Search Model of the Labor Market," Econometrica, Econometric Society, vol. 66(5), pages 1183-1222, September.
    14. van den Berg, Gerard J & Gorter, Cees, 1997. "Job Search and Commuting Time," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 269-281, April.
    15. Crane, Randall, 1996. "The Influence of Uncertain Job Location on Urban Form and the Journey to Work," Journal of Urban Economics, Elsevier, vol. 39(3), pages 342-356, May.
    16. William C. Wheaton & Raymond G. Torto, 1988. "Vacancy Rates and the Future of Office Rents," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 16(4), pages 430-436, December.
    17. Weinberg, Daniel H. & Friedman, Joseph & Mayo, Stephen K., 1981. "Intraurban residential mobility: The role of transactions costs, market imperfections, and household disequilibrium," Journal of Urban Economics, Elsevier, vol. 9(3), pages 332-348, May.
    18. Venti, Steven F. & Wise, David A., 1984. "Moving and housing expenditure: Transaction costs and disequilibrium," Journal of Public Economics, Elsevier, vol. 23(1-2), pages 207-243.
    19. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-273, May.
    20. Jos van Ommeren & Piet Rietveld & Peter Nijkamp & Jos van Ommeren & Piet Rietveld & Peter Nijkamp, 2004. "Job Moving, Residential Moving, and Commuting: A Search Perspective," Chapters, in: Location, Travel and Information Technology, chapter 11, pages 223-246, Edward Elgar Publishing.
    21. Benito, A. & Oswald, A., 2000. "Commuting in Great Britain in the 1990s," The Warwick Economics Research Paper Series (TWERPS) 560, University of Warwick, Department of Economics.
    22. White, Michelle J, 1986. "Sex Differences in Urban Commuting Patterns," American Economic Review, American Economic Association, vol. 76(2), pages 368-372, May.
    23. Taylor, Mark P, 1996. "Earnings, Independence or Unemployment: Why Become Self-Employed?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(2), pages 253-266, May.
    24. Alan B. Krueger, 1991. "Ownership, Agency, and Wages: An Examination of Franchising in the Fast Food Industry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(1), pages 75-101.
    25. Hamilton, Bruce W, 1989. "Wasteful Commuting Again," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1497-1504, December.
    26. Jos Van Ommeren & Joyce Dargay, 2006. "The Optimal Choice of Commuting Speed: Consequences for Commuting Time, Distance and Costs," Journal of Transport Economics and Policy, University of Bath, vol. 40(2), pages 279-296, May.
    27. Cropper, Maureen L. & Gordon, Patrice L., 1991. "Wasteful commuting: A re-examination," Journal of Urban Economics, Elsevier, vol. 29(1), pages 2-13, January.
    28. Hamilton, Bruce W, 1982. "Wasteful Commuting," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 1035-1051, October.
    29. Zax, Jeffrey S., 1991. "Compensation for commutes in labor and housing markets," Journal of Urban Economics, Elsevier, vol. 30(2), pages 192-207, September.
    30. Carrington, William J & McCue, Kristin & Pierce, Brooks, 1996. "The Role of Employer-Employee Interactions in Labor Market Cycles: Evidence from the Self-Employed," Journal of Labor Economics, University of Chicago Press, vol. 14(4), pages 571-602, October.
    31. Van Ommeren, Jos & Rietveld, Piet, 2005. "The commuting time paradox," Journal of Urban Economics, Elsevier, vol. 58(3), pages 437-454, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Belloc, Ignacio, 2021. "El tiempo de desplazamiento al lugar de trabajo en el Reino Unido: Diferencias entre asalariados y autoempleados [Commuting time in the United Kingdom: Differences between wage-earners and self-emp," MPRA Paper 108260, University Library of Munich, Germany.
    2. Ignacio Gimenez-Nadal, J. & Molina, Jose Alberto & Velilla, Jorge, 2018. "The commuting behavior of workers in the United States: Differences between the employed and the self-employed," Journal of Transport Geography, Elsevier, vol. 66(C), pages 19-29.
    3. Gimenez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2015. "Excess Commuting in the US: Differences between the Self-Employed and Employees," IZA Discussion Papers 9425, Institute of Labor Economics (IZA).
    4. Giménez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2022. "Trends in commuting time of European workers: A cross-country analysis," Transport Policy, Elsevier, vol. 116(C), pages 327-342.
    5. Vincent Viguié, 2015. "Cross-commuting and housing prices in a polycentric modeling of cities," Policy Papers 2015.03, FAERE - French Association of Environmental and Resource Economists.
    6. Giménez-Nadal, José Ignacio & Velilla, Jorge & Ortega-Lapiedra, Raquel, 2024. "Differences in commuting between employee and self-employed workers: The case of Latin America," Journal of Transport Geography, Elsevier, vol. 114(C).
    7. Manning, Alan, 2003. "The real thin theory: monopsony in modern labour markets," Labour Economics, Elsevier, vol. 10(2), pages 105-131, April.
    8. Van Ommeren, Jos & Fosgerau, Mogens, 2009. "Workers' marginal costs of commuting," Journal of Urban Economics, Elsevier, vol. 65(1), pages 38-47, January.
    9. Roberts, Jennifer & Hodgson, Robert & Dolan, Paul, 2011. "“It's driving her mad”: Gender differences in the effects of commuting on psychological health," Journal of Health Economics, Elsevier, vol. 30(5), pages 1064-1076.
    10. Gimenez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2016. "Commuting Time and Sex Ratios in the US," IZA Discussion Papers 9933, Institute of Labor Economics (IZA).
    11. Jean Flemming, 2018. "Costly Commuting and the Job Ladder," 2018 Meeting Papers 100, Society for Economic Dynamics.
    12. van Ommeren, Jos & Rietveld, Piet & Nijkamp, Peter, 1997. "Commuting: In Search of Jobs and Residences," Journal of Urban Economics, Elsevier, vol. 42(3), pages 402-421, November.
    13. Jennifer Roberts & Karl Taylor, 2017. "Intra-household commuting choices and local labour markets," Oxford Economic Papers, Oxford University Press, vol. 69(3), pages 734-757.
    14. Giménez-Nadal, José Ignacio & Velilla, Jorge & Ortega, Raquel, 2022. "Revisiting excess commuting and self-employment: The case of Latin America," GLO Discussion Paper Series 1179, Global Labor Organization (GLO).
    15. Cheng, Lin & Chen, Chen & Xiu, Chunliang, 2017. "Excess kindergarten travel in Changchun, Northeast China: A measure of residence-kindergarten spatial mismatch," Journal of Transport Geography, Elsevier, vol. 60(C), pages 208-216.
    16. Giménez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2021. "Two-way commuting: Asymmetries from time use surveys," Journal of Transport Geography, Elsevier, vol. 95(C).
    17. Qin, Ping & Wang, Lanlan, 2019. "Job opportunities, institutions, and the jobs-housing spatial relationship: Case study of Beijing," Transport Policy, Elsevier, vol. 81(C), pages 331-339.
    18. José Ignacio Giménez-Nadal & José Alberto Molina & Jorge Velilla, 2024. "Intermediate activities while commuting," Review of Economics of the Household, Springer, vol. 22(3), pages 1185-1220, September.
    19. Mette Deding & Trine Filges & Jos Van Ommeren, 2009. "Spatial Mobility And Commuting: The Case Of Two‐Earner Households," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 113-147, February.
    20. Myung-Jin Jun & Simon Choi & Frank Wen & Ki-Hyun Kwon, 2018. "Effects of urban spatial structure on level of excess commutes: A comparison between Seoul and Los Angeles," Urban Studies, Urban Studies Journal Limited, vol. 55(1), pages 195-211, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:regeco:v:38:y:2008:i:2:p:127-147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/regec .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.