Long Commuting Time and the Benefits of Telecommuting

Author Name MORIKAWA Masayuki (Vice President, RIETI)
Creation Date/NO. March 2018 18-J-009
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This study, using original survey data, presents empirical evidence on the relationship between commuting time and telecommuting on the one hand, and wages and subjective well-being on the other hand in Japan, where long commuting time is prevalent. According to the analysis, first, individuals have a strong preference to avoid long commuting time relative to long working hours, particularly among female and non-standard employees. Second, there is a wage premium for long commuters, and is greater for female employees. Third, female, young, married and those who have preschool age children positively evaluate telecommuting. Fourth, although the number of telecommuters is currently very small, they enjoy wage premiums and higher job satisfaction. These findings suggest that diffusion of telecommuting and satellite offices may contribute to increasing the labor market participation of female and elderly people.

The English version of this paper is 18-E-025.