Decomposition of the Change in the Amount of Commuting in Denmark 1980-1995

Abstract

The amount of commuting has increased in Denmark from 1980 -1995. Several factors can have caused this increase. The goal of this paper is to measure the contributions from different factors, using a decomposition analysis. Several variants of the decomposition method are presented and used. The results from the different approaches are rather similar, however.

The decomposition is model dependent, giving different results for different models. If a Keynesian model is assumed, it is concluded, that it is the location of residences which is responsible for the major part of the increased commuting. If a neoclassical growth model is assumed, however, the location of firms is responsible. For both models, the growth in number of employed persons contributes with some amount, while the sector distribution has nearly no impact.