English, Article edition: Commuting and Reimbursement of Residential Relocation Costs Jos Van Ommeren; Piet Rietveld

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Physical Description
  • article
Language
  • English

Edition details

Title
  • Commuting and Reimbursement of Residential Relocation Costs
Author
  • Jos Van Ommeren
  • Piet Rietveld
Physical Description
  • article
Notes
  • We develop an equilibrium job search model in which employees incur commuting costs, and residential relocation is costly. We demonstrate that firms partially compensate workers for the incurred relocation costs to avoid paying compensation for commuting costs when house prices do not fully compensate the commuting costs. Taxing reimbursement of relocation costs at a higher rate than reimbursement of commuting costs raises the length of the average journey to work and this tax structure should therefore be avoided if one of the governments' policy objectives is to reduce the (external) costs of commuting. © 2007 LSE and the University of Bath
  • RePEc:tpe:jtecpo:v:41:y:2007:i:1:p:51-73
Language
  • English
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