Are Workers with A Long Commute Less Productive? An Empirical Analysis of Absenteeism

We hypothesize, and test for, a negative effect of the length of the commute on worker’s productivity, by examining whether the commute has a positive effect on worker’s absenteeism. Our estimates for Germany indicate that commuting distance induces absenteeism with an elasticity of about 0.07. On average, absenteeism would be about 16 percent less if all workers would have a negligible commute. These results are consistent with urban efficiency wage models.<P>This discussion paper has resulted in a publication in <A href="http://www.sciencedirect.com/science/article/pii/S0166046210000633">'Regional Science and Urban Economics'</A>, 41(1) 1-8.