Pablo Fajgelbaum, Amit Khandelwal, Wookun Kim, Cristiano Mantovani, Edouard Schaal, 17 July 2020

In implementing lockdowns to combat the spread of Covid-19, policymakers have primarily imposed the same policies uniformly across locations within a city. This column studies optimal dynamic lockdowns within a commuting network, using a framework that integrates canonical spatial epidemiology and trade models and is applied to commuting data from three cities – Daegu, Seoul and New York. It finds that optimal spatial lockdowns generate substantially smaller income losses than uniform lockdowns for a given virus spread.

David Cuberes, Jennifer Roberts, Cristina Sechel, 02 June 2019

Richer households have typically chosen to live in the suburbs of big cities because of the lower prices and larger properties. This column reports evidence from England that multiple factors now influence household location, including such urban amenities as parks, monuments, restaurants, and public transport. Analysis of the eight largest cities outside London finds no systematic relationship between income and household distance to the city centre. Indeed, household heterogeneity is an important determinant of location: for example, on average households with heads who are migrants live 25% closer to the centre than non-migrants; and only households who are employed are influenced by the availability of public transport.

Francesca Carta, Marta De Philippis, 11 November 2018

Commuting time has been regarded mainly as affecting labour supply decisions at the individual level. Previous analyses do not consider the interactions between partners’ commuting times and their labour supply. This column shows that, in response to the husband’s longer commute, the wife’s employment decreases and the husband works slightly more. These results suggest that intra-family interactions need to be considered when evaluating policies that apparently affect one partner only.

Jörg Paetzold, Hannes Winner, 17 December 2016

Since the Global Crisis, many governments around the world have initiated policies against tax evasion and harmful tax avoidance. This column uses data from an Austrian commuter allowance scheme to explore how the design of tax schemes and the social environment affect compliance. A substantial share of employees in the study misreport their commuting distance in order to receive more compensation. Employees also appear to be influenced by the misreporting behaviour of their co-workers, showing how tax evasion can have spillover effects.

Ferdinando Monte, Stephen Redding, Esteban Rossi-Hansberg, 10 December 2015

Commuting fairly long distances to work has become an accepted facet of modern life in big cities. Yet very little research has been done on commuting and how elastic or inelastic it is in the face of certain shocks. This column goes through the data and assesses the impact of shocks on local employment, migration and commuting. Academics would do well to increase research into commuting in order to better develop wider employment policy.

Laurent Gobillon, Peter Rupert, Étienne Wasmer, 23 July 2013

The unemployment rate in France is roughly six percentage points higher for African immigrants than for natives. Why? This column argues that the explanation is spatial: recent immigrants tend to have much longer commute times. Research suggests that in the region of 20% of the employment gap between the French minority and the French majority can be put down to commute times, but more research is needed, especially in France where research into the ethnic unemployment gap is scarce.


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