Estimating the Marginal Willingness to Pay for Commuting

Journal of Regional Science, Vol. 40, Issue 3, August 2000

Posted: 20 Jul 2001

See all articles by Jos van Ommeren

Jos van Ommeren

Vrije Universiteit Brussel (VUB)

Gerard J. van den Berg

VU University Amsterdam - Department of Economics; Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics; Tinbergen Institute

Cees Gorter

Vrije Universiteit Amsterdam, School of Business and Economics

Abstract

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.

Suggested Citation

van Ommeren, Jos and van den Berg, Gerard J. and Gorter, Cees, Estimating the Marginal Willingness to Pay for Commuting. Journal of Regional Science, Vol. 40, Issue 3, August 2000. Available at SSRN: https://ssrn.com/abstract=242203

Jos Van Ommeren (Contact Author)

Vrije Universiteit Brussel (VUB) ( email )

Pleinlaan 2
http://www.vub.ac.be/
Brussels, 1050
Belgium

Gerard J. Van den Berg

VU University Amsterdam - Department of Economics ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands
+31 20 444 6132 (Phone)
+32 20 444 6020 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Tinbergen Institute

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Cees Gorter

Vrije Universiteit Amsterdam, School of Business and Economics ( email )

De Boelelaan 1105
Amsterdam, 1081HV
Netherlands
+31-(0)20-44 46093 (Phone)

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