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| Author: | Ommeren, J. Van Rietveld, P. |
| Title: | Commuting and reimbursement of residental relocation costs |
| Journal: | Journal of Transport Economics and Policy
2007 : JAN, VOL. 41:1, p. 51-73 |
| Index terms: | commuter transport job search relocation |
| Language: | eng |
| Abstract: | This study develops an equilibrium job search model in which employees incur commuting costs, and residental relocation is costly. It is demonstrated that companies partially compensate workers for the incurred relocation costs to avoid paying compensation for commuting costs when house prices do not fully compensate the commuting costs. Taxing reimbursement of relocation costs at a higher rate than reimbursement of commuting costs raises the length of the average journey to work and this tax structure should therefore be avoided if one of the governments' policy objectives is to reduce the (external) costs of commuting. |
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