The role of job uncertainty in inter‐regional commuting: The case of Italy

This paper studies the evolution of the determinants of inter‐regional commuting in Italy in the period 1992–2016, during which the labour market has been significantly reformed. To capture the changes in commuting patterns, the analysis of the role of individual, job, firm, and regional characteristics is performed. Specifically, the focus is on the impact of job uncertainty at both micro and macro level, through the analysis of the way the diffusion of temporary contracts has affected the decision to commute for work. The findings suggest that in more recent years workers hired on a temporary contract are more likely to commute to another region. Moreover, the higher the relative share of temporary contracts in the region of residence, the higher the probability of commuting across regions. These findings support the idea that the strong utilisation of (short) temporary contracts represents a push factor, which drives workers away in search of better job opportunities, with potentially negative consequences for poorly performing regions.     

Does Commuting Reduce Wage Disparities?

ABSTRACT This paper shows that in the Baltic countries, commuting reduces urban‐rural wage and employment disparities and increases national output. To quantify the effect of commuting on wage differentials, two sets of earnings functions are estimated (based on Estonian, Latvian, and Lithuanian Labor Force Surveys) with location variables (capital city, rural, etc.) measured at the workplace and at the place of residence. We find that the ceteris paribus wage gap between capital city and rural areas, as well as between capital and other cities is significantly narrowed by commuting in some cases but remains almost unchanged in others. Different outcomes are explained by country‐specific spatial patterns of commuting, educational and occupational composition of commuting flows, and presence or absence of wage discrimination against rural residents in urban markets. A treatment effects model is used to estimate individual wage gains to rural—urban or inter‐city commuting; these gains are substantial in most but not all cases. Wage effects of commuting distance, as well as impact of education, gender, ethnicity, and local labor market conditions on the commuting decision are also explored.     

Living in Two Worlds: A Review of Home‐to‐Work Decisions

ABSTRACT This paper discusses various aspects of the economic analysis of commuting behavior. It starts with a review of two difficulties associated with urban economics models: the empirically falsified prediction of the relation between commuting time and income, and the presence of substantial excess commuting. Notwithstanding these anomalies, research that focuses directly on the value of travel time provides evidence that there is substantial resistance against commuting among large groups of workers. However, commuting costs are just one among many other explanatory variables for actual commuting behavior, and commuting itself has become much less onerous over time. This suggests that commuting costs play a much more limited role than has been assumed in the past. On the other hand, empirical evidence suggests that space is more important than one would be inclined to think on the basis of the considerations just given. These empirical regularities suggest that other space‐related aspects of the functioning of urban labor and housing markets are more important than was previously thought.     

Regional Variations of Firm Births,Deaths and Growth Patterns in the UK, 1980–1991

One of the debates around new firm formation across sub‐national territories focuses on whether regional differences in industrial structure are more important influences than regional differences in individual industry performance. The present research, using Value Added Tax (VAT) registration data, attempts to make a contribution to this debate in the United Kingdom (UK) context using a shift‐share covariance model. Firm de‐registrations and, as a consequence, net changes in firm stocks are also analyzed with similar questions in mind. The findings show that although the effects of industrial mix are significant across most regions, in several key regional contexts the industrial competitive effect dominates. The issue of the role of regional industrial concentration forms a second major theme of this paper. This basically involves a questioning as to whether concentration is a positive or negative force for new firm formation. The results of this research indicate that industrial concentration, measured through localization, is more important for firm deaths than for firm births (although significant for both), but not particularly relevant to the understanding of the net outcome of entry and exit processes. In the UK, regions with higher levels of industry concentration seem to be associated overall with relatively lower levels of both firm births and deaths.     

Regional Variation of Firm Size and Growth: The Portuguese Case

This paper analyses the patterns of firm growth of manufacturing firms across Portuguese regions. In particular, we compare firm size and growth in order to investigate 1) whether region‐specific characteristics, interpreted as generating localization economies, exert any influence on firm growth and size, and 2) whether there is evidence of persistence in firm growth across regions. Using an extensive dataset of Portuguese manufacturing firms and applying parametric and semi‐parametric approaches, we found that, in eleven of the eighteen analyzed regions, firm growth is related to firm size and therefore firms have no equal probabilities of attaining a particular growth rate within any given period. Moreover, the results uncovered that firms experience serial correlation in their growth patterns in all regions and region‐specific characteristics, such as industrial diversity, entrepreneurship potential, and workforce qualities, engender differences in the way firms grow. Thus, this paper adds to the literature by showing how geographic location matters to firm size and growth.     

Density and the journey to work

"This paper evaluates the influence of residential density on commuting behavior across U.S. cities while controlling for available opportunities, the technology of transportation infrastructure, and individual socio-economic and demographic characteristics. The measures of metropolitan and local density are addressed separately.... Regressions are conducted to predict commuting time, speed, and distance, by mode of travel on a cross-section of individuals nationally and city by city. The results indicate that residential density in the area around the tripmaker's home is an important factor: the higher the density the lower the speed and the shorter the distance.... The paper suggests a threshold density at which the decrease in distance is overtaken by the congestion effects resulting in a residential density between 7,500 and 10,000 persons per square mile (neither the highest nor lowest) with the shortest duration auto commutes."     

Relationship Between Ownership Structures and Performance inChinese Electronic Enterprises

This paper investigates the relationship between ownership structure and corporate performance in Chinese electronic enterprises systematically, using ROA as the dependent variable while ownership concentration and structure as the explanatory variables. The empirical results show that:Chinese electronic enterprises' strength is not balanced and their ownership structure is very concentrated. Each of state ownership,legal person ownership and individual ownership has no significant effect on firm performance.     

Economic development incentive program deadweight: The role of program design features,firm characteristics,and location

This paper examines the effectiveness of state economic development incentive programs in stimulating new business activity. It reviews literature that identifies factors that potentially influence the effectiveness of incentives. Empirical work draws on a 2018 survey of approximately 150 firms that received at least one award for startup, expansion, or relocation purposes during the period SFY2010–SFY2016 from a state economic development incentive program (i.e., grant, tax credit, loan, equity investment) offered by the Commonwealth of Virginia. The paper evaluates the role of program design features (e.g., discretionary vs. automatic, relative size of incentive), firm characteristics (e.g., size of firm, industry), and locational variables (e.g., state boundary location, rurality) on firm assessments of the role of incentives in business growth decisions. It finds that firms that receive up-front or discretionary program awards and undertake multistate site searches are less likely to report that the incentive was not needed for their project to succeed. These results suggest that automatic, back-loaded award programs, and programs that fund noncompetitive projects are less likely to affect firm location and expansion decisions.     

U.S. Commuting Networks and Economic Growth: Measurement and Implications for Spatial Policy

Labor market areas (LMAs) have long been a staple of regional and urban analysis. As commuting patterns have expanded over time, these areas have become larger and more complex, and the dichotomous designation of a county either belonging to an LMA or not may no longer be adequate. We apply recent advances in network science to conduct a more refined analysis of U.S. commuting patterns, and examine their effects on local economic growth. Results show that network degree and entropy measures explain variations in county per capita income growth patterns. Higher in‐ and out‐commuting entropies are associated with lower per capita income growth, but their interaction enhances economic growth in places simultaneously open to both in‐ and out‐commuters. Using these results, common ground may be found for creating new forms of regional governance that better reflect local realities of cross‐county border flows of workers and economic activity.     

The Source of Metropolitan Growth: The Role of Commuting

Over the past few years, a large number of studies have focused on whether population or employment is critical to the source of metropolitan growth. However, only few attempts have so far been made to additionally consider the suburbanization stage and pattern of commuting, which may both enable us to explore this “chicken–egg” issue a little further. The purpose of this paper is to compare dwelling‐based (housing) with job‐based (job) employment to evaluate the net commuting. The Taipei metropolitan area, for example, now lies at the initial suburbanization stage with only population decentralization and massive in‐commuting to the central city. The estimation results based on a co‐integration system reveal that the central‐city employment can be regarded as an engine of this metropolitan economy. Besides, we also find that dwelling‐based employment distorts the causality between population and employment, especially from the variance‐decomposition accounts. Therefore, the importance of commuting to investigating the evolution of metropolitan economy should not be overlooked.     

Firm Networks and Korean Subsidiaries in the United States

ABSTRACT This article examines the role of intra‐, inter‐, and extra‐firm networks in influencing the location and investment of Korean firms and their subsidiaries in the U.S. Based on a survey of Korean subsidiaries in the U.S. in 2004, this article finds that inter‐firm relations with customers and suppliers, as well as intra‐firm relations in the form of parent firms’ knowledge of the U.S. play an important role in locational decision. Korean subsidiaries’ relationships with U.S. places are strongly influenced by home‐based practices that favor hierarchical intra‐firm organization and embedded sociopolitical extra‐firm relationships that emphasize blood, school, and regional ties. Location in U.S. industrial clusters does not increase Korean subsidiaries’ level of autonomy from parent firm's control that could help facilitate the sourcing of local knowledge and resources. Only improved intra‐firm network positionality positively contributes to increased subsidiary autonomy. Overall, the findings indicate that while inter‐firm relations may be important in locational selection among Korean firms, network norms are largely maintained through intra‐firm and, to a lesser extent, extra‐firm relations.     

Interaction effects between the agglomerative externalities affecting the survival of small startups

The purpose of this study is to identify the relationship between the survival of firms and the influence of agglomeration economies on firm location using a mixed effect Cox model considering random effects, given the industrial conditions of South Korea. Each agglomerative externality had a negative effect on the survival proportion of small startups except the related variety of the tertiary sector. However, the interaction effects between each externality and the location potential and among agglomerative externalities mostly played a complementary role to the survivability of startups; however certain effects reduced the survivability, and the effects were differentiated for each industrial sector. This study provides an advanced understanding of small firm performance after entry into the market in developing and developed nations.     

Urban Polycentricity and the Costs of Commuting: Evidence from Italian Metropolitan Areas

Polycentricity at the metropolitan scale is perhaps the model of spatial organisation that needs to be investigated more thoroughly as regards its effects on travel. The aim of this paper is to test the role of polycentricity—as well as other spatial characteristics, such as compactness, functional diversification and size—in the costs of commuting, taking into account an external cost component (per‐capita CO₂ emissions) and a private cost component (time spent on travelling). The degree of urban polycentricity has been measured by adopting a dynamic approach based on commuting flows and on social network analysis tools. The analysis is carried out using a database of 82 Italian metropolitan areas (MAs). Results show that MAs with a higher degree of polycentricity are more virtuous both in terms of private and external costs of mobility, while the degree of compactness is associated with lower environmental costs but with higher private costs. Size is associated with both higher external and private costs, while the role of functional diversification turns out to be statistically insignificant. Socio‐demographics also play a role.     

Long-distance commuting and population change in Georgia, 1960-80

The authors investigate counter-urbanization and population change in Georgia between 1960 and 1980 by examining commuting patterns. "The immediate objective is to construct the entire set of commuting fields of both large metropolitan areas to metropolitan and nonmetropolitan employment centers. We then proceed to the relationship between commuting from nonmetropolitan areas to all levels of Georgia's urban hierarchy and population change in these nonmetropolitan settings. By matching population growth and decline areas with explicit employment ties...the nature of the population changes is much better understood." Data from the 1960, 1970, and 1980 censuses for 581 Census County Divisions (CCDs) in Georgia are analyzed. It is concluded that "most nonmetropolitan growth taking place in Georgia is associated with intensification of metropolitan commuting fields along with growth of nonmetropolitan centers and their influence along the very periphery of metropolitan spheres of employment influence. However, a significant share of Georgia's nonmetropolitan population revitalization is explained by growth independent of direct metropolitan influence. It would appear then that nonmetropolitan growth centers are an important part of the basis for population decentralization in Georgia. Metropolitan spill-over alone cannot account for counterurbanization on this portion of the American economic landscape."     

Rural‐to‐Urban Commuting: Three Degrees of Integration

Commuting ties between rural places of residence and urban places of employment are among the most visible forms of rural–urban integration. For some rural areas, access to urban employment is a key source of population retention and growth. However, this access varies considerably across rural areas, with distance representing a primary deterrent. In addition to distance, the size of the urban community will also influence rural‐to‐urban commuting opportunities. In this paper, using Canadian data, we empirically estimated the influence of local rural population and job growth on rural out‐commuting within the urban hierarchy. We find consistent support for the deconcentration hypothesis where population moves to rural areas for lifestyle and quality of life reasons, while retaining urban employment. Further, we find some evidence that in addition to distance from the nearest urban center being a deterrent, increased remoteness from the top of the urban hierarchy exerts a positive influence on out‐commuting. Recognition of these types of rural–urban linkages through commuting is essential in designing Canadian rural policy and targeted programs that may effectively support local rural populations. In particular, they point to the need to have reasonable transportation infrastructure for urban accessibility, which should be complemented by other “built” infrastructure to improve the livability of rural communities.     

The Returns to Migration: The Influence of Education and Migration Type

We show the impact of migration type on real wages over time. We create a migration and earnings history from the National Longitudinal Survey of Youth over the period 1979–2002. We estimate the effects of primary, onward, and two types of return migration on real wages using a panel data model with individual, location, and time fixed effects. Panel data are well suited for the study of the returns to U.S. internal migration because the influence of migration on wages has been found to occur years after the event. We differentiate return migration into two types: return to a location with ties that form a geographical anchor (“home”) and return to a prior place of work. We find that real wage growth varies by migration type. Education attainment is a significant factor in real wage growth. Our results show that onward migration is an important channel by which the monetary rewards to a college education are manifested.     

Multisited Versus Compact Producer Service Firms: Insights from the French Case

Much of the literature on the location of producer services is concerned with their uneven spatial development across regions. Although this approach is useful, it proves to be limited, and a complementary analytical framework is required. This paper uses data from France's Annual Survey of Services to address producer service location from a novel perspective, that of the firm. A basic distinction is made between single site (compact) and multisite (network) producer service firms, and the natures of these two types are analyzed in terms of business strategies, location and performance. Further analyses are then based upon the distinctions between sales and servuction networks, and between specialized and diversified networks. Although significant for producing higher output levels, a network structure does not necessarily ensure a higher level of profitability.     

Economic heterogeneity within large metropolitan areas

In recent years, research has indicated a trend in the US for the distribution of income to become bimodal, with movement away from a dominant middle class and toward more people being in the upper or lower ends of the income scale. With this trend, an analysis of municipalities would be expected to show frequency distributions for various economic variables that would have widened, become more skewed, and become flattened or U-shaped. Additionally, the mode of distribution would be expected to move toward the lower income end. An analysis of individuals within the rich and poor communities would be expected to show frequency distributions that have narrowed. This study tested the above expectations. The usual measures of skewness and peakedness were used for data analyses, as well as a modified Pearson place. The metropolitan areas sampled were Atlanta, Boston, Chicago, Dallas, Detroit, Los Angles, and Washington, DC. Changes were looked for in comparing per capita income figures from the US Census for each municipality in the metropolitan areas in 1969,1979, and 1983. For individual municipalities, a sample of 30 Chicago suburbs was used to show income distribution. Results of per capita income in metropolitan areas (except Dallas) for 1969-1979 showed that middle income communities became more dominant, not less; therefore, the poorer communities became richer. The results for 1979-1983 showed that the trend came to a halt. For individual income results, a trend toward greater homogeneity in the 1970s came to a halt in the 1980s and began to reverse itself. For individual municipalities, the larger ones were more heterogeneous. Additionally, those with greater population increases were more homogeneous in income, and those with the highest increases in income tended to be moving toward more homogeneity. The poor communities, therefore, were more income-heterogeneous. A bimodal income distribution does not exist, but some metropolitan areas are moving in that direction.