Estimating the marginal willingness to pay for commuting

With informational frictions on the labor market, hedonic wage regressions provide biased estimates of the willingness to pay for job attributes. We s how that a recent theoretical result, which states that the variation in jo b durations provides a basis for obtaining good estimates, can be generaliz ed 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 i s estimated to equal almost half of the hourly wage rate.