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The value of commuting time in an empirical on-the-job search model – an application based on moments from two samples

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This article estimates the Value of Commuting Time (VOCT) among Swedish males in an empirical on-the-job search model. It uses a large sample of employee-establishment linked data obtained from administrative registers. The sample lacks information on mode choice for the journey to work. We therefore estimate a mode choice model on another sample and use this model to link the administrative data to the relevant set of travel times, costs and distances. The VOCT is found to be 1.8 times the net hourly wage rate in the sample. The relatively high estimate results from a high VOCT among cohabiting men.

Keywords: C25; C41; H54; J22; R23; R48; job durations; mode choice; on-the-job search model; value of time

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036846.2012.678981

Affiliations: 1: Transport Economics Unit,National Road and Transportations Research Institute, PO Box 920, SE-781 29 Borlänge, Sweden 2: Department of Transport and Economics,Royal Institute of Technology, SE-100 44 Stockholm, Sweden 3: Transport Economics Unit,National Road and Transportations Research Institute, PO Box 55685SE-102 15 Stockholm, Sweden

Publication date: July 1, 2013

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