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Wage Compensation for Long Distance Commuters in Chile

Author

Listed:
  • Dusan Paredes

    (Departamento de Economía, Universidad Católica del Norte, Chile)

  • Juan Soto

    (Departamento de Economía, Universidad Católica del Norte, Chile)

Abstract

This paper suggests that long distance commuters in Chile obtain a wage compensation of 8.7% on average when they commute among functional areas using data for 2009, while previous work identifies an average compensation of 19% using counties. Also, we estimated a higher compensation per hour. This estimated wage gradient is 6.1% per commuted hour and it is robust in several econometric specifications, a significantly higher number than the 0.06% previously reported in Jamett and Paredes (2013). Long distance commuters receive different wage compensation along the education distribution. Workers with a high education earn a higher wage compensation. This research suggests that the labor market alone does not seem to present evidence, which foreshadows a reduction in LDC flows. Moreover, this paper displays how the labor market offers workers higher incentives in order to maintain the flow of long distance commuting.

Suggested Citation

  • Dusan Paredes & Juan Soto, 2015. "Wage Compensation for Long Distance Commuters in Chile," Documentos de Trabajo en Economia y Ciencia Regional 56, Universidad Catolica del Norte, Chile, Department of Economics, revised Feb 2015.
    • Handle: RePEc:cat:dtecon:dt201502
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    File URL: https://sites.google.com/a/ucn.cl/wpeconomia/archivos/WP2015-02.pdf
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    More about this item

    Keywords

    Long Distance Commuting; Wage Compensation; Functional Areas;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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