Wage compensation for long distance commuters in Chile

This paper suggests that long distance commuters in Chile obtain a wage compen- sation of 8.7% on average when they commute among functional areas using data for 2009, while previous work identies an average compensation of 19% using counties. Also, we estimated a higher compensation per hour. This estimated wage-gradient is 6.1% per commuted hour and it is robust in several econometric specications, a signicantly higher number than the 0.06% previously reported in Jamett and Paredes (2013). Long distance commuters receive dierent wage compensation along the education distribution. Workers with a high education earn a higher wage compensation. This research suggests that the labor market alone does not seem to present evidence, which foreshadows a reduction in LDC ows. Moreover, this paper displays how the labor market oers workers higher incentives in order to maintain the ow of long distance commuting.