Commuting Paradox in a Model with Migration Subsidies

Student: Tereshonok Anna

Faculty: International College of Economics and Finance

Educational Programme: Double degree programme in Economics of the NRU HSE and the University of London (Bachelor)

Year of Graduation: 2019

In recent decades, commuting has become commonplace, at the same time commuting patterns are crucial topics for investigation in the field of urban and economic studies. Due to excess commuting outflow areas (periphery) are at a disadvantage with the inflow districts (center), on account of loss of lab or resources and growing contrast in living conditions. Simultaneously takes place so-called ‘commuting paradox’, which discloses itself with a fact that individuals constantly underestimate the downsides of a long commuting trips, while overestimating the upsides of higher wages as a substitution. In this paper we consider the solution of the commuting paradox as well as investigate the impact of migration subsidies on the well-being of peripheral areas via constructing various models based on different cases.

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