Article ID Journal Published Year Pages File Type
7383680 Regional Science and Urban Economics 2018 33 Pages PDF
Abstract
This study tests for the effect of earning potential on commuting time of working husbands and wives in two-worker households in South Korea. The theoretical result obtained by Alonso (1964) and Muth (1969) is that a higher wage has offsetting effects on commuting by increasing both the demand for housing and the time cost of commuting. This study places these offsetting effects in a model of bid-rent for a two-worker household that extends the model presented by White (1977). The basic finding is that an increase in the wage rate increases the worker's commuting time by a small statistically significant amount. The result holds for both husbands and wives. The net effect of a higher wage on commuting time is positive and small. As other studies have found, commuting time is greater for husbands than for wives.
Keywords
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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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