Why do firms reimburse job applicants´ relocation costs? (516)

Theme Track: Labour Markets - Wages

Authors:
van Ommeren, Jos ; Rietveld, Piet

We develop an equilibrium job search model in which employees incur commuting costs, and residential relocation is costly. We demonstrate that firms partially compensate workers for the incurred relocation costs to avoid paying compensation for commuting costs.

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