The effect of search imperfections on commuting behaviour: Evidence from employed and self-employed workers

We aim to estimate the effect of search imperfections on the length of the average commute. We start from the assumption that the commute of the self-employed is the result of a search process for vacant workplaces, whereas employees search for vacant jobs. Because the arrival rate of workplaces is...

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Bibliographic Details
Published in:Regional science and urban economics 2008-03, Vol.38 (2), p.127-147
Main Authors: van Ommeren, Jos N., van der Straaten, J. Willemijn
Format: Article
Language:English
Subjects:
Commuting
Economic theory
Employees
Employment
Excess commuting
Self employment
Self-employed
Self-employed workers
Studies
Work place
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Summary:We aim to estimate the effect of search imperfections on the length of the average commute. We start from the assumption that the commute of the self-employed is the result of a search process for vacant workplaces, whereas employees search for vacant jobs. Because the arrival rate of workplaces is much higher than the arrival rate of jobs, the self-employed minimize the commute, whereas employees may have to accept jobs with a longer commute. In the empirical analysis, the extent of the ‘wasteful’ or ‘excess commuting’ is identified by estimating the difference in the commute of employees and self-employed individuals. Our estimates indicate that about 40 to 60% of the observed commute may be considered ‘excess’ due to search imperfections. We reject a range of alternative hypotheses as to why the self-employed have a shorter commute than employees (self-selection of not working from home, preference for residence and workplace locations, characteristics of workers which are difficult to observe).
ISSN:0166-0462
1879-2308
DOI:10.1016/j.regsciurbeco.2008.01.008