Long distance commuting in Chile: estimating the prize for working far away from home
The importance of Long Distance Commuting (LDC) has increased as a result of the continuous reduction of transport costs. This paper formalizes the relationship between LDC and wage through a job search model where a commuting time variable is included. The paper proposes that LDC be compensated in...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Universidad de Chile
2013-01-01
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| Series: | Estudios de Economía |
| Online Access: | https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/31031 |
| Summary: | The importance of Long Distance Commuting (LDC) has increased as a result of the continuous reduction of transport costs. This paper formalizes the relationship between LDC and wage through a job search model where a commuting time variable is included. The paper proposes that LDC be compensated in wage and be increasing in distance, and that the regions which receive more commuters pay a higher premium wage. The results suggest an average premium of 19% for LDC. However, the applicable rate depends on the workplace location of each commuter, and thus it might be as high as 40%. |
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| ISSN: | 0304-2758 0718-5286 |