On-the-job search behavior: The importance of commuting time

Using search theory, we show that job search effort is increasing and, under some conditions, convex in commuting time. We show that the effect of commuting time on job search effort levels may be small in case of uncertainty caused by future job and residential moving behavior. Thus, we provide a microeconomic explanation for the finding that commuters behave as if they are footloose. Our empirical analysis supports the behavioral implications of the model for the Netherlands. Surprisingly, we do not find any evidence that the effect of commuting time on search behavior depends on the commuters' socioeconomic characteristics.