Commuting costs and their impact on wage rates

Abstract

Using data from households across Scotland this research found strong evidence that wage compensation for commuting does occur, though this is only partial. The evidence also appears to suggest that compensation for commuting costs occurs entirely through the wage rate. Additionally, there is evidence to suggest that the marginal level of compensation varies by gender. A key finding of this study is that the complex interaction between wage rates, commuting costs, work and household location decisions and the value of travel time means that, through labour supply effects, transport policy has little impact on wages. The wage appears almost insensitive to transport policy measures as the behavioural response to such measures is to alter commuting distances