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Estimating the Marginal Willingness to Pay for Commuting
Author(s) -
Van Ommeren Jos,
Van Den Berg Gerard J.,
Gorter Cees
Publication year - 2000
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/0022-4146.00187
Subject(s) - willingness to pay , economics , wage , econometrics , hourly wage , marginal utility , variation (astronomy) , labour economics , microeconomics , physics , astrophysics
With informational frictions on the labor market, hedonic wage regressions provide biased estimates of the willingness to pay for job attributes. We show that a recent theoretical result, which states that the variation in job durations provides a basis for obtaining good estimates, can be generalized to a wide class of search models. We apply this result by estimating the marginal willingness of employed workers to pay for commuting, using Dutch longitudinal data. The average willingness to pay for one hour commuting is estimated to equal almost half of the hourly wage rate.