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...

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Main Authors: Iván Jamett Sasonov, Dusan Paredes Araya
Format: Article
Language:English
Published: Universidad de Chile 2013-01-01
Series:Estudios de Economía
Online Access:https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/31031
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spelling doaj-b55a965af0214c2cb202ba5fe280e3f12020-11-25T00:24:47ZengUniversidad de ChileEstudios de Economía0304-27580718-52862013-01-0140217920931031Long distance commuting in Chile: estimating the prize for working far away from homeIván Jamett Sasonov0Dusan Paredes Araya1Departamento de Economía, Universidad Católica del NorteDepartamento de Economía, Universidad Católica del NorteThe 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%.https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/31031
collection DOAJ
language English
format Article
sources DOAJ
author Iván Jamett Sasonov
Dusan Paredes Araya
spellingShingle Iván Jamett Sasonov
Dusan Paredes Araya
Long distance commuting in Chile: estimating the prize for working far away from home
Estudios de Economía
author_facet Iván Jamett Sasonov
Dusan Paredes Araya
author_sort Iván Jamett Sasonov
title Long distance commuting in Chile: estimating the prize for working far away from home
title_short Long distance commuting in Chile: estimating the prize for working far away from home
title_full Long distance commuting in Chile: estimating the prize for working far away from home
title_fullStr Long distance commuting in Chile: estimating the prize for working far away from home
title_full_unstemmed Long distance commuting in Chile: estimating the prize for working far away from home
title_sort long distance commuting in chile: estimating the prize for working far away from home
publisher Universidad de Chile
series Estudios de Economía
issn 0304-2758
0718-5286
publishDate 2013-01-01
description 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%.
url https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/31031
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