The value of commuting time in an empirical on-the-job search model

The value of commuting time in an empirical on-the-job search model: an application based on moments from two samples

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Gunnar Isacsson
Anders Karlström

This article estimates the Value of Commuting Time (VOCT) among Swedish males in an empirical on-the-job search model. It uses a large sample of employee-establishment linked data obtained from administrative registers. The sample lacks information on mode choice for the journey to work. We therefore estimate a mode choice model on another sample and use this model to link the administrative data to the relevant set of travel times, costs and distances. The VOCT is found to be 1.8 times the net hourly wage rate in the sample. The relatively high estimate results from a high VOCT among cohabiting men.



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