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 …

, incomplete segregation of citizens who work in different business centers and, therefore, cross commuting, and incomplete …

-for example, metropolitan areas and commuting zones-are unsatisfactory because they are ad hoc and usually do not correspond to … closely to commonly used local planning areas, and they better capture spillovers and commuting flows without becoming …

. They reside in a city and commuting to the job center involves both pecuniary and time costs. Thus, workers with high wages … are willing to live closer to jobs to save on time commuting costs. We show that, in equilibrium, there is a one … to jobs, have low commuting costs and pay high land rents. We also show that higher commuting costs and higher …

. They reside in a city and commuting to the job center involves both pecuniary and time costs. Thus, workers with high wages … are willing to live closer to jobs to save on time commuting costs. We show that, in equilibrium, there is a one … to jobs, have low commuting costs and pay high land rents. We also show that higher commuting costs and higher …

and commuting costs because firms need to compensate the transportation cost difference between the employed and …

. They reside in a city and commuting to the job center involves both pecuniary and time costs. Thus, workers with high wages … are willing to live closer to jobs to save on time commuting costs. We show that, in equilibrium, there is a one … commuting costs and land rent create additional frictions in the labor market …