Reimbursement of commuting costs by employers has attracted little attention from economists. We develop a theoretical … frictions and show that partial reimbursement of commuting cost will in general be an element of the recruitment policy. The … alternative explanation that stresses the role of tax incentives is unlikely to provide a full explanation of the commuting costs …

Spatial wage differences other incentives to change the location of work either by commuting or by moving to the new … change due to commuting or moving, I study how spatial urban-fringe productivity differences and labor mobility shape optimal … redistribution under tax deduction of commuting expenses. My study underlines the significance of the tax system for local labour …