Commuting and Reimbursement of Residential Relocation Costs
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
Year of publication: |
2007
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Authors: | Ommeren, Jos Van ; Rietveld, Piet |
Published in: |
Journal of Transport Economics and Policy. - London School of Economics and University of Bath, ISSN 0022-5258. - Vol. 41.2007, 1, p. 51-73
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Publisher: |
London School of Economics and University of Bath |
Saved in:
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