Recruitment in a Monopsonistic Labour Market: Will Travel Costs be reimbursed?

Research output: Working paperProfessional

Abstract

Reimbursement of commuting costs by employers has attracted little attention from economists. We develop a theoretical model of a monopsonistic employer who determines an optimal recruitment policy in a spatial labour market with search frictions and show that partial reimbursement of commuting cost will in general be an element of the recruitment policy. The empirical evidence we offer is consistent with the interpretation of reimbursement as the result of monopsonistic behaviour. The alternative explanation that stresses the role of tax incentives is unlikely to provide a full explanation of the commuting costs reimbursement.
Original languageEnglish
Place of PublicationAmsterdam
PublisherTinbergen Instituut
Publication statusPublished - 2007

Publication series

NameDiscussion paper TI
No.07-044/3

Fingerprint

Labour market
Travel cost
Reimbursement
Commuting costs
Employers
Empirical evidence
Economists
Search frictions
Tax incentives

Cite this

Rouwendal, J., & Ommeren, J. V. (2007). Recruitment in a Monopsonistic Labour Market: Will Travel Costs be reimbursed? (Discussion paper TI; No. 07-044/3). Amsterdam: Tinbergen Instituut.
Rouwendal, Jan ; Ommeren, Jos van. / Recruitment in a Monopsonistic Labour Market: Will Travel Costs be reimbursed?. Amsterdam : Tinbergen Instituut, 2007. (Discussion paper TI; 07-044/3).
@techreport{33edb757f8274990ad0f3eaad1cdeda6,
title = "Recruitment in a Monopsonistic Labour Market: Will Travel Costs be reimbursed?",
abstract = "Reimbursement of commuting costs by employers has attracted little attention from economists. We develop a theoretical model of a monopsonistic employer who determines an optimal recruitment policy in a spatial labour market with search frictions and show that partial reimbursement of commuting cost will in general be an element of the recruitment policy. The empirical evidence we offer is consistent with the interpretation of reimbursement as the result of monopsonistic behaviour. The alternative explanation that stresses the role of tax incentives is unlikely to provide a full explanation of the commuting costs reimbursement.",
author = "Jan Rouwendal and Ommeren, {Jos van}",
year = "2007",
language = "English",
series = "Discussion paper TI",
publisher = "Tinbergen Instituut",
number = "07-044/3",
type = "WorkingPaper",
institution = "Tinbergen Instituut",

}

Rouwendal, J & Ommeren, JV 2007 'Recruitment in a Monopsonistic Labour Market: Will Travel Costs be reimbursed?' Discussion paper TI, no. 07-044/3, Tinbergen Instituut, Amsterdam.

Recruitment in a Monopsonistic Labour Market: Will Travel Costs be reimbursed? / Rouwendal, Jan; Ommeren, Jos van.

Amsterdam : Tinbergen Instituut, 2007. (Discussion paper TI; No. 07-044/3).

Research output: Working paperProfessional

TY - UNPB

T1 - Recruitment in a Monopsonistic Labour Market: Will Travel Costs be reimbursed?

AU - Rouwendal, Jan

AU - Ommeren, Jos van

PY - 2007

Y1 - 2007

N2 - Reimbursement of commuting costs by employers has attracted little attention from economists. We develop a theoretical model of a monopsonistic employer who determines an optimal recruitment policy in a spatial labour market with search frictions and show that partial reimbursement of commuting cost will in general be an element of the recruitment policy. The empirical evidence we offer is consistent with the interpretation of reimbursement as the result of monopsonistic behaviour. The alternative explanation that stresses the role of tax incentives is unlikely to provide a full explanation of the commuting costs reimbursement.

AB - Reimbursement of commuting costs by employers has attracted little attention from economists. We develop a theoretical model of a monopsonistic employer who determines an optimal recruitment policy in a spatial labour market with search frictions and show that partial reimbursement of commuting cost will in general be an element of the recruitment policy. The empirical evidence we offer is consistent with the interpretation of reimbursement as the result of monopsonistic behaviour. The alternative explanation that stresses the role of tax incentives is unlikely to provide a full explanation of the commuting costs reimbursement.

M3 - Working paper

T3 - Discussion paper TI

BT - Recruitment in a Monopsonistic Labour Market: Will Travel Costs be reimbursed?

PB - Tinbergen Instituut

CY - Amsterdam

ER -

Rouwendal J, Ommeren JV. Recruitment in a Monopsonistic Labour Market: Will Travel Costs be reimbursed? Amsterdam: Tinbergen Instituut. 2007. (Discussion paper TI; 07-044/3).