We develop a standard search-matching model in which mobility costs are so high that it is too costly for workers to relocate when a change in their employment status occurs. We show that, in equilibrium, wages increase with distance to jobs and commuting costs because firms need to compensate...

The time that workers spend commuting to and from work has increased in recent decades in many developed economies. However, most research on the topic has ignored how a couple’s commuting behaviors are related. This paper analyzes how husband and wife commuting behaviors respond to job change...