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Commuting, Wages, and Household Behavior

Author

Listed:
  • Gimenez-Nadal, José Ignacio

    (University of Zaragoza)

  • Molina, José Alberto

    (University of Zaragoza)

  • Velilla, Jorge

    (University of Zaragoza)

Abstract

Commuting is a significant aspect of workers' daily routines and is associated with various negative outcomes. Traditional literature often models commuting from an urban perspective, focusing on the trade-off between commuting and housing. This paper offers an alternative view by using a household model as the theoretical basis to explore the interconnectedness of couples' commuting, wages, labor supply, and consumption. Using data from the PSID for the years 2011-2019, results indicate a positive and highly significant correlation between wages and commuting when analyzed cross-sectionally. However, changes in wages and commuting over an individual's life cycle are not related. Additionally, commuting appears to be associated with spousal commuting, household earnings, and wealth, while higher expenditures are linked to longer commutes, but again, only cross-sectionally.

Suggested Citation

  • Gimenez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2024. "Commuting, Wages, and Household Behavior," IZA Discussion Papers 17128, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17128
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    More about this item

    Keywords

    commuting; household behavior; wages; PSID;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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