IDEAS home Printed from https://ideas.repec.org/p/vua/wpaper/1998-46.html
   My bibliography  Save this paper

Estimating the marginal willingness to pay for commuting

Author

Listed:
  • Ommeren, Jos van

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

  • Berg, Gerard J. van den
  • Gorter, Cees

Abstract

With informational frictions on the labor market, hedonic wage regressions provide biased estimates of the willingness to pay for job attributes. We show that a recent theoretical result, which states that variation in job durations does provide good estimates in case of a basic on-the-job search model, can be generalized to a wide class of search models. We apply this result by estimating the marginal willingness of employed workers to pay for commuting, using Dutch longitudinal data. The average willingness to pay for one hour commuting is estimated to equal almost half of the hourly wage rate.

Suggested Citation

  • Ommeren, Jos van & Berg, Gerard J. van den & Gorter, Cees, 1998. "Estimating the marginal willingness to pay for commuting," Serie Research Memoranda 0046, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    • Handle: RePEc:vua:wpaper:1998-46
    as

    Download full text from publisher

    File URL: http://degree.ubvu.vu.nl/repec/vua/wpaper/pdf/19980046.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. van den Berg, Gerard J & Gorter, Cees, 1997. "Job Search and Commuting Time," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 269-281, April.
    2. Devine, T. J. & Kiefer, N. M., 1995. "The empirical status of job search theory," Labour Economics, Elsevier, vol. 2(1), pages 101-101, March.
    3. Gerard J. van den Berg, 1990. "Nonstationarity in Job Search Theory," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(2), pages 255-277.
    4. repec:bla:econom:v:46:y:1979:i:182:p:175-85 is not listed on IDEAS
    5. Bartik, Timothy J. & Butler, J. S. & Liu, Jin-Tan, 1992. "Maximum score estimates of the determinants of residential mobility: Implications for the value of residential attachment and neighborhood amenities," Journal of Urban Economics, Elsevier, vol. 32(2), pages 233-256, September.
    6. Zax, Jeffrey S., 1991. "Compensation for commutes in labor and housing markets," Journal of Urban Economics, Elsevier, vol. 30(2), pages 192-207, September.
    7. van den Berg, Gerard J, 1992. "A Structural Dynamic Analysis of Job Turnover and the Costs Associated with Moving to Another Job," Economic Journal, Royal Economic Society, vol. 102(414), pages 1116-1133, September.
    8. Timothy J. Gronberg & W. Robert Reed, 1994. "Estimating Workers' Marginal Willingness to Pay for Job Attributes Using Duration Data," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 911-931.
    9. Herzog, Henry W, Jr & Schlottmann, Alan M, 1990. "Valuing Risk in the Workplace: Market Price, Willingness to Pay, and the Optimal Provision of Safety," The Review of Economics and Statistics, MIT Press, vol. 72(3), pages 463-470, August.
    10. Albrecht, James W. & Holmlund, Bertil & Lang, Harald, 1991. "Comparative statics in dynamic programming models with an application to job search," Journal of Economic Dynamics and Control, Elsevier, vol. 15(4), pages 755-769, October.
    11. Heckman, James J. & Singer, Burton, 1984. "Econometric duration analysis," Journal of Econometrics, Elsevier, vol. 24(1-2), pages 63-132.
    12. Hwang, Hae-shin & Mortensen, Dale T & Reed, W Robert, 1998. "Hedonic Wages and Labor Market Search," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 815-847, October.
    13. Blau, David M, 1991. "Search for Nonwage Job Characteristics: A Test of the Reservation Wage Hypothesis," Journal of Labor Economics, University of Chicago Press, vol. 9(2), pages 186-205, April.
    14. Ann P. Bartel, 1982. "Wages, Nonwage Job Characteristics, and Labor Mobility," ILR Review, Cornell University, ILR School, vol. 35(4), pages 578-589, July.
    15. Wales, Terence J., 1978. "Labour supply and commuting time : An empirical study," Journal of Econometrics, Elsevier, vol. 8(2), pages 215-226, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Van Ommeren, Jos & Fosgerau, Mogens, 2009. "Workers' marginal costs of commuting," Journal of Urban Economics, Elsevier, vol. 65(1), pages 38-47, January.
    2. Jos Van Ommeren & Mihails Hazans, 2008. "Workers' Valuation of the Remaining Employment Contract Duration," Economica, London School of Economics and Political Science, vol. 75(297), pages 116-139, February.
    3. StÈphane Bonhomme & GrÈgory Jolivet, 2009. "The pervasive absence of compensating differentials," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(5), pages 763-795.
    4. Jean Flemming, 2018. "Costly Commuting and the Job Ladder," 2018 Meeting Papers 100, Society for Economic Dynamics.
    5. Petri Böckerman & Pekka Ilmakunnas, 2004. "Job Disamenities, Job Satisfaction and on-the-Job Search: Is There a Nexus?," Working Papers 208, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    6. van Ommeren, Jos & Rietveld, Piet & Nijkamp, Peter, 1997. "Commuting: In Search of Jobs and Residences," Journal of Urban Economics, Elsevier, vol. 42(3), pages 402-421, November.
    7. Giovanni Russo & Jos Ommeren & Piet Rietveld, 2012. "The university workers’ willingness to pay for commuting," Transportation, Springer, vol. 39(6), pages 1121-1132, November.
    8. Jos Van Ommeren, 2003. "The Unemployed Individual's Marginal Willingness to Pay for the Remaining Entitlement Period," LABOUR, CEIS, vol. 17(2), pages 271-283, June.
    9. Petri Böckerman & Pekka Ilmakunnas, 2006. "Do job disamenities raise wages or ruin job satisfaction?," International Journal of Manpower, Emerald Group Publishing Limited, vol. 27(3), pages 290-302, April.
    10. van den Berg, Gerard J, 1999. "Empirical Inference with Equilibrium Search Models of the Labour Market," Economic Journal, Royal Economic Society, vol. 109(456), pages 283-306, June.
    11. Van Ommeren, Jos & Koopman, Marnix, 2011. "Public housing and the value of apartment quality to households," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 207-213, May.
    12. Michela Ponzo, 2012. "On-the-job Search in Italian Labor Markets: An Empirical Analysis," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 19(2), pages 213-232, July.
    13. van Ommeren, Jos & Rietveld, Piet & Nijkamp, Peter, 2002. "A bivariate duration model for job mobility of two-earner households," European Journal of Operational Research, Elsevier, vol. 137(3), pages 574-587, March.
    14. Manning, Alan, 2003. "The real thin theory: monopsony in modern labour markets," Labour Economics, Elsevier, vol. 10(2), pages 105-131, April.
    15. Paul Sullivan, 2010. "A Dynamic Analysis Of Educational Attainment, Occupational Choices, And Job Search," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(1), pages 289-317, February.
    16. Jos van Ommeren & Piet Rietveld & Peter Nijkamp & Jos van Ommeren & Piet Rietveld & Peter Nijkamp, 2004. "Job Moving, Residential Moving, and Commuting: A Search Perspective," Chapters, in: Location, Travel and Information Technology, chapter 11, pages 223-246, Edward Elgar Publishing.
    17. Thomas Le Barbanchon & Roland Rathelot & Alexandra Roulet, 2021. "Gender Differences in Job Search: Trading off Commute against Wage," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(1), pages 381-426.
    18. Cottini, Elena & Kato, Takao & Westergaard-Nielsen, Niels, 2011. "Adverse workplace conditions, high-involvement work practices and labor turnover: Evidence from Danish linked employer–employee data," Labour Economics, Elsevier, vol. 18(6), pages 872-880.
    19. Rouwendal, Jan, 1999. "Spatial job search and commuting distances," Regional Science and Urban Economics, Elsevier, vol. 29(4), pages 491-517, July.
    20. Aico van Vuuren & Michiel van Leuvensteijn, 2007. "The impact of homeownership on unemployment in the Netherlands," CPB Discussion Paper 86.rdf, CPB Netherlands Bureau for Economic Policy Analysis.

    More about this item

    Keywords

    job search; commuting distance; job durations; hedonic wages;
    All these keywords.

    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vua:wpaper:1998-46. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: R. Dam (email available below). General contact details of provider: https://edirc.repec.org/data/fewvunl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.