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Publication - Professor Gerard Van den Berg

    Estimating the marginal willingness to pay for commuting


    Van Ommeren, J, Berg, GJVD & Gorter, C, 2000, ‘Estimating the marginal willingness to pay for commuting’. Journal of Regional Science, vol 40., pp. 541-563


    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.

    Full details in the University publications repository