Work

The labour market and commuting: The importance of search frictions and transport-related fringe benefits

Year: 2026

Type: article

Abstract: Canonical urban models treat the labour market as frictionless and therefore imply full compensation for commuting costs. Given job search frictions, workers accept jobs that do not fully compensate for commuting costs. As a result, commuting distances become longer and affect labour market outcomes, including wages, in a way not predicted by frictionless models. Special attention is given to the role of transport-related fringe benefits, including employer-provided parking and company cars, which further increase commuting distances via tax-induced distortions. • Links labour market outcomes to commuting with job search frictions. • Standard urban economics models ignore these frictions. • Frictions yield a more realistic view of commuting patterns. • And strongly affect the estimation of workers’ commuting costs. • Nonwage amenities also shape commuting decisions.

Source: Regional Science and Urban Economics

DOI: 10.1016/j.regsciurbeco.2026.104226

Author: Jos N. van Ommeren

Institution: Vrije Universiteit Amsterdam

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Sustainable cities and communities

Open Access status: hybrid

Estimated APC paid: $3,600