TY - JOUR
T1 - Substitution between Working at Home and Out-of-Home: The Role of ICT and Commuting Costs
AU - de Graaff, T.
AU - Rietveld, P.
PY - 2007
Y1 - 2007
N2 - This paper analyzes the trade-off between working at home and out-of-home, ICT and commuting time. To this end, we develop a microeconomic demand system, which explicitly incorporates both time and income constraints. Commuting time is considered as the price to be paid for working out-of-home and a decrease in earnings as the price for working at home. For the latter, we find that working at home leads to a (marginally significant) reduction of the wage rate of about 19%, but this gap largely disappears when ICT is used for at home work. To examine the relation between out-of-home and at home work empirically, we estimate a translog indirect utility function, from which we are able to estimate substitution and price elasticities between working at home and out-of-home for The Netherlands. The results show that changes in ICT and commuting time display rather weak substitution effects on working out-of-home and at home, respectively. Moreover, individual characteristics - especially age and education - seem to be more important for the choice between working at home and out-of-home than ICT availability or commuting time. © 2006 Elsevier Ltd. All rights reserved.
AB - This paper analyzes the trade-off between working at home and out-of-home, ICT and commuting time. To this end, we develop a microeconomic demand system, which explicitly incorporates both time and income constraints. Commuting time is considered as the price to be paid for working out-of-home and a decrease in earnings as the price for working at home. For the latter, we find that working at home leads to a (marginally significant) reduction of the wage rate of about 19%, but this gap largely disappears when ICT is used for at home work. To examine the relation between out-of-home and at home work empirically, we estimate a translog indirect utility function, from which we are able to estimate substitution and price elasticities between working at home and out-of-home for The Netherlands. The results show that changes in ICT and commuting time display rather weak substitution effects on working out-of-home and at home, respectively. Moreover, individual characteristics - especially age and education - seem to be more important for the choice between working at home and out-of-home than ICT availability or commuting time. © 2006 Elsevier Ltd. All rights reserved.
U2 - 10.1016/j.tra.2006.02.005
DO - 10.1016/j.tra.2006.02.005
M3 - Article
VL - 41
SP - 142
EP - 160
JO - Transportation Research. Part A: Policy & Practice
JF - Transportation Research. Part A: Policy & Practice
SN - 0965-8564
IS - 19
ER -