The commuting time paradox

J.N. van Ommeren; P. Rietveld

doi:10.1016/j.jue.2005.06.001

The commuting time paradox

J.N. van Ommeren, P. Rietveld

Spatial Economics

Research output: Contribution to Journal › Article › Academic › peer-review

Abstract

We examine the conditions for the 'commuting time paradox' which states that the average commuting time does not vary between different periods. We develop therefore an equilibrium job search model with endogenously chosen commuting costs. Presuming wage bargaining between workers and firms, the optimally chosen maximum commuting costs jointly maximise the worker's and firm's payoffs. We demonstrate that when productivity levels increase over time, average commuting costs and average wages both increase, which affects the optimally chosen commuting time. We establish the conditions under which the paradox holds. © 2005 Elsevier Inc. All rights reserved.

Original language	English
Pages (from-to)	437-454
Number of pages	17
Journal	Journal of Urban Economics
Volume	58
DOIs	https://doi.org/10.1016/j.jue.2005.06.001
Publication status	Published - 2005

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abstract = "We examine the conditions for the 'commuting time paradox' which states that the average commuting time does not vary between different periods. We develop therefore an equilibrium job search model with endogenously chosen commuting costs. Presuming wage bargaining between workers and firms, the optimally chosen maximum commuting costs jointly maximise the worker's and firm's payoffs. We demonstrate that when productivity levels increase over time, average commuting costs and average wages both increase, which affects the optimally chosen commuting time. We establish the conditions under which the paradox holds. {\textcopyright} 2005 Elsevier Inc. All rights reserved.",

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AB - We examine the conditions for the 'commuting time paradox' which states that the average commuting time does not vary between different periods. We develop therefore an equilibrium job search model with endogenously chosen commuting costs. Presuming wage bargaining between workers and firms, the optimally chosen maximum commuting costs jointly maximise the worker's and firm's payoffs. We demonstrate that when productivity levels increase over time, average commuting costs and average wages both increase, which affects the optimally chosen commuting time. We establish the conditions under which the paradox holds. © 2005 Elsevier Inc. All rights reserved.

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