Introduction
The debate surrounding the effects of telecommuting on commuting distance has been ongoing for years. Early studies focused on whether telecommuting could alleviate congestion and reduce emissions caused by car usage. However, more recent research suggests that telecommuting also has implications for the geography of labor markets and the economic efficiency of cities and regions.
While previous studies have generally found that workers are more willing to accept a longer commute on the days they telecommute, estimates of the magnitude of this effect vary. Additionally, there is little consensus on how to account for biases resulting from the simultaneous choice of telecommuting and commute length. This study aims to investigate the relationship between telecommuting and commuting time, taking into account preference-based sorting.
Telecommuting and Commuting Time
The theoretical effects of telecommuting on commuting time have been debated for decades. Some argue that telecommuting may reduce travel by enabling individuals to work from home, while others suggest it may lead to longer commutes if workers are willing to travel farther when they don’t have to commute every day.
Empirical research on the relationship between telecommuting and commuting time has yielded mixed results. Some studies have found a negative relationship, indicating that telecommuters tend to have shorter commutes. However, there is no consensus on the magnitude of this effect. Moreover, previous studies have not adequately addressed biases resulting from preference-based sorting.
Empirical Issues
To better understand the relationship between telecommuting and commuting time, this study utilizes Dutch panel data collected over 12 years. By comparing the marginal costs of one-way commuting time (MCC) for telecommuters and non-telecommuters, the study demonstrates that commuting preferences differ between the two groups.
To account for preference-based sorting biases, the study employs fixed effects models that control for unobservable time-invariant characteristics of respondents. This approach allows for a more accurate estimation of the impact of telecommuting on commuting time.
The Impact of Telecommuting on Commuting Time
The findings of this study reveal that telecommuters, on average, have a higher MCC compared to non-telecommuters. This suggests that telecommuters are more willing to accept longer one-way commuting times. Controlling for preference-based sorting biases, the study shows that working from home allows individuals to accept, on average, 5% longer commuting times. Additionally, every additional 8 hours of telecommuting per week is associated with a 3.5% increase in commuting times.
Conclusion
This study contributes to the understanding of the relationship between telecommuting and commuting time. By accounting for preference-based sorting biases, the findings suggest that telecommuting enables individuals to accept longer commutes. These findings have implications for policies aimed at relieving congestion and reducing transport-related emissions, as well as for strategies to enhance the economic efficiency of cities and regions.
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