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Why do Firms reimburse Job Applicants' Relocation Costs?

Author

Listed:
  • Jos van Ommeren

    (Vrije Universiteit Amsterdam)

  • Piet Rietveld

    (Vrije Universiteit Amsterdam)

Abstract

We develop an equilibrium job search model in which employees incur commuting costs, and residential relocation is costly. We demonstrate that firms partially compensate workers for the incurred relocation costs to avoid paying compensation for commuting costs.

Suggested Citation

  • Jos van Ommeren & Piet Rietveld, 2002. "Why do Firms reimburse Job Applicants' Relocation Costs?," Tinbergen Institute Discussion Papers 02-065/3, Tinbergen Institute.
    • Handle: RePEc:tin:wpaper:20020065
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