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Costly Commuting and the Job Ladder

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  • Jean Flemming

    (University of Oxford)

Abstract

I study the interaction between commuting and employment in the data and within a spatial model of on-the-job search. I document the link between commuting time, job-to-job transitions, and earnings empirically. The theoretical model features a city in which individuals must commute in order to work, explicitly taking into account the distributions across both space and productivity. Costly commuting causes workers to reject otherwise good matches, resulting in a higher degree of productivity mismatch between workers and firms. The rate of job-to-job transitions and wage gains within and between jobs depend crucially on the spatial elements of the model. I use the model to study how commuting costs affect unemployment, future wage growth, and aggregate output.

Suggested Citation

  • Jean Flemming, 2018. "Costly Commuting and the Job Ladder," 2018 Meeting Papers 100, Society for Economic Dynamics.
  • Handle: RePEc:red:sed018:100
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    Cited by:

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    3. Marchiori, Luca & Pascal, Julien & Pierrard, Olivier, 2023. "(In)efficient commuting and migration choices: Theory and policy in an urban search model," Regional Science and Urban Economics, Elsevier, vol. 102(C).
    4. Guglielminetti, Elisa & Lalive, Rafael & Ruh, Philippe & Wasmer, Etienne, 2024. "Job search with commuting and unemployment insurance: A look at workers’ strategies in time," Labour Economics, Elsevier, vol. 88(C).

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    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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