Estimating the marginal willingness to pay for commuting

Jos Van Ommeren*, Gerard J. Van Den Berg, Cees Gorter

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)

51 Citations (Scopus)

Abstract

With informational frictions on the labor market, hedonic wage regressions provide biased estimates of the willingness to pay for job attributes. We show that a recent theoretical result, which states that the variation in job durations provides a basis for obtaining good estimates, can be generalized to a wide class of search models. We apply this result by estimating the marginal willingness of employed workers to pay for commuting, using Dutch longitudinal data. The average willingness to pay for one hour commuting is estimated to equal almost half of the hourly wage rate.

Original languageEnglish
Pages (from-to)541-563
Number of pages23
JournalJournal of Regional Science
Volume40
Issue number3
Publication statusPublished - 2000

    Fingerprint

Cite this