Abstract
This paper identifies the causal effect of commute time on labor supply in urban China and provides implications for the development of active commuting. Labor supply is measured by daily workhours, workdays per week and weekly workhours, and city average commute time is adopted as an instrumental variable to correct the endogenous problem of individual commute time. We find that in urban China, commute time does not have effect on daily labor supply but has negative effects on workdays per week and weekly labor supply. These results are different from those found in Germany and Spain, and are potentially related to the intense competition among workers in the labor market of China. Moreover, the effect of commute time on workdays per week is stronger for job changed workers. In addition, the effects of commute time on labor supply are not different between males and females. Finally, policy implications for active commuting are discussed.
Highlights
Active transportation and commuting are efficient ways to improve individuals’ physical activities, ameliorate individuals’ health status, and reduce air pollution
We aim to identify the causal effect of commute time on labor supply in urban China, and provide policy implications for the promotions of active commuting
Survey (CHNS), and combining the fixed effect model and instrumental variable method, we find that commute time does not have a significant effect on daily workhours in China, which is in contrast with the findings in Germany and Spain [1,3]
Summary
Active transportation and commuting are efficient ways to improve individuals’ physical activities, ameliorate individuals’ health status, and reduce air pollution. China, such as Beijing, have built a large number of exclusive bike lanes and encourage people to go to work using this healthy and green method. If commute time is proved to have negative effects on labor supply, a potential conflict between active commuting and economic development may arise, which might threaten the development of active commuting to some extent. In this case, in order to better benefit from the functions of active commuting and transportation, remedies should be considered to mitigate the negative effects
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