ABSTRACT
This chapter focuses on the relationship between residential and job moving decisions and commuting behaviour for two-earner households. The case of two-earner households deserves special attention because the two wage earners in the same household share a dwelling, but have separate working places. The chapter analyses the residential and job moving behaviour for two-earner households. The hazard rate for voluntarily leaving the present job is defined as the product of the job offer arrival rate and the conditional probability of accepting a job offer. The hazard rate for moving residence is defined as the product of the residence offer arrival rate and the conditional probability of accepting a residence offer. The search model is much stylised and is not in all respects very realistic. The obvious difference between these two types of households is that the expected job career of a non-employed spouse affects the lifetime utility of the household, and accordingly the behaviour of the employed spouse.
