J22 - Time Allocation and Labor SupplyReturn

Commuting to work is understood to expand the geographic scope of the individual labor market, thereby increasing the likelihood of employment and higher earnings. However, it is also associated with additional transport costs. In this study, data collected from a 2011 survey of Czech employees were used to assess the profitability of inter-urban commuting by comparing the income gained from commuting with the costs of travel by car and public transport. Through this approach, the most cost-effective strategy for inter-urban commuting in the Czech Republic was identified. Although commuting generally results in higher income, car travel was found to lead to a net financial loss even for short distances. By contrast, commuting by public transport was shown to yield a financial gain, provided that suitable connections between the place of residence and the place of work are available.