ABSTRACT
This chapter discusses the theoretical considerations will be based on search theory. It provides some support for the theoretical result based on a data set of Dutch commuters. The chapter focuses on sound micro economic principles without imposing an urban model, and, empirically, based on micro data on job search behaviour. It analyses job search behaviour of employed individuals in the Netherlands. Job search effort is increasing in commuting time -whatever the behaviour in the housing market - and, under some conditions, convex in commuting time. Conditional on the commuting distance, the worker chooses the mode of transport that determines the commuting time. The relationship between job search behaviour and commuting will be described from a search-theoretical perspective. Search theory is appealing as it is based on the idea that individuals maximise lifetime utility by moving through different states and so it is explicitly dynamic.
