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Transport-Related Fringe Benefits

Author

Listed:
  • Jos van Ommeren

    (Vrije Universiteit Amsterdam)

  • Arno van der Vlist

    (Vrije Universiteit Amsterdam)

  • Peter Nijkamp

    (Vrije Universiteit Amsterdam)

Abstract

This discussion paper resulted in a publication in the 'Journal of Regional Science' , 2006, 46(3), 493-506. Fringe benefits of various kinds have become an essential element of modern labour market mechanisms. Firms offer transport-related fringe benefits such as transport subsidies (company cars, travel and parking subsidies) and relocation subsidies to job applicants. The spatial implications of these fringe benefits have hardly received any systematic attention thus far. The present paper addresses this largely unexplored issue. Using information from a survey on firms' recruitment behaviour in the UK, this paper demonstrates that the applicants' journey-to-work time induces firms to offer various transport-related fringe benefits to job applicants. The implications of these transport-related fringe benefits for commuting and relocation are rather distinct. Transport subsidies discourage applicants, whereas relocation subsidies induce applicants to move closer to the workplace. We interpret the results as evidence that employers offer transport-related fringe benefits either to reduce the length of the journey to work or to compensate employees for the incurred commuting costs.

Suggested Citation

  • Jos van Ommeren & Arno van der Vlist & Peter Nijkamp, 2002. "Transport-Related Fringe Benefits," Tinbergen Institute Discussion Papers 02-063/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20020063
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    File URL: https://papers.tinbergen.nl/02063.pdf
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    References listed on IDEAS

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    1. Frank A. Scott & Mark C. Berger & Dan A. Black, 1989. "Effects of the Tax Treatment of Fringe Benefits on Labor Market Segmentation," ILR Review, Cornell University, ILR School, vol. 42(2), pages 216-229, January.
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    5. Jos Van Ommeren & Gerard J. Van Den Berg & Cees Gorter, 2000. "Estimating the Marginal Willingness to Pay for Commuting," Journal of Regional Science, Wiley Blackwell, vol. 40(3), pages 541-563, August.
    6. Timothy Smeeding, 1983. "The Size Distribution of Wage and Nonwage Compensation: Employer Cost versus Employee Value," NBER Chapters, in: The Measurement of Labor Cost, pages 237-286, National Bureau of Economic Research, Inc.
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    Citations

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    Cited by:

    1. Galit Cohen-Blankshtain, 2008. "Institutional constraints on transport policymaking: the case of company cars in Israel," Transportation, Springer, vol. 35(3), pages 411-424, May.
    2. David Collard & Michael Godwin & John Hudson, 2005. "The Provision of Company Benefits in the UK," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(7-8), pages 1397-1421.

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    More about this item

    Keywords

    fringe benefits; company car; residential mobility;
    All these keywords.

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • R29 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other

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