J31 - Wage Level and Structure; Wage DifferentialsReturn

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.

The study contributes to the body of knowledge on job-related and individual characteristics determining the earnings of those working as employees. A multivariate analysis of the 2010 and 2015 European Survey on Working Conditions data (N=1,168) documents the differences in earnings across studied variables, such as gender, educational level, the skill level of profession, years of experience or perceived discrimination. The obtained results are interpreted in line with the prior research. It follows from the main findings that the highest earnings are observed among managerial professions and the lowest among the least skilled occupations. Returns to education are increasing with the obtained level of formal education and are highest for doctoral studies graduates. The positive impact has also years of experience and the number of working hours per week. Quite surprisingly, the conducted analysis does not prove any significant effect of discrimination (sexual orientation, religion, disability, race, ethnic background or colour) on individuals' earnings. The study might be of interest to the Czech labour market researchers and policymakers as it, besides the analysis, provides several future research suggestions.