Loss aversion in the trade-off between wages and commuting distances

Konferenzbeitrag

We exploit administrative data on exact commuting distances for a large sample of German employees and study the relation of commuting and wages. We find that it requires 1.5 times as much money in terms of higher wages for job changers to accept an increase of their commute as compared to their willingness to pay for a reduction by the same distance. This provides non-experimental evidence for loss aversion. One third of this can be attributed to sorting of workers into certain firms at various distances and the remainder to a match-specific wage component that workers and firms bargain over.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2019: 30 Jahre Mauerfall - Demokratie und Marktwirtschaft - Session: Urban Economics ; No. D12-V3

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Micro-Based Behavioral Economics: General‡ ; Wage Level and Structure; Wage Differentials ; Unemployment: Models, Duration, Incidence, and Job Search ; Size and Spatial Distributions of Regional Economic Activity ; Transportation Economics: General
• Thema: commuting ; loss aversion ; marginal willingness to pay ; job search

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Dauth, Wolfgang ; Haller, Peter
• Ereignis: Veröffentlichung
• (wer): ZBW - Leibniz-Informationszentrum Wirtschaft
• (wo): Kiel, Hamburg
• (wann): 2019

Weitere Informationen

• Handle: http://hdl.handle.net/10419/203611
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ