Telework, Frequency of Working Out-of-home, and Commuting: A Labor Supply Model and an Application to the Netherlands

This paper analyses the case where workers have to choose between the location of work, leisure, commuting hours and the frequency to work out-of-home. Both a short-run and a long-run model are presented. In the short-run, workers are not able to set their optimal amount of commuting time, where in the long-run commuting time is treated as an endogenous variable. Moreover, frequency of working out-of-home is explicitly taken in to account, where it is assumed that there is op optimal frequency of commuting trips. An empirical model and estimation results for the Netherlands are offered. Preliminary results are that workers have an intrinsic preference to work out-of-home approximately 2.5 days a week and need at least 14 hours of leisure time.