Telework, Frequency of Working Out-of-home and Commuting: A Labor Supply Model and An Application to the Netherlands

Preliminary version! Do not quote This paper analyzes the case where workers have to choose be-tween the location of work, leisure, commuting hours and the fre-quency to work out-of-home. Both a short-run and a long-run model are presented. In the short-run, workers are not able to set their op-timal amount of commuting time, where in the long-run commuting time is treated as an endogenous variable. Moreover, frequency of working out-of-home is explicitly taken into account, where it is as-sumed that there is op optimal frequency of commuting trips. An em-pirical model and estimation results for the Netherlands are offered. Preliminary results are that workers have an intrinsic preference to work out-of-home approximately 2.5 days a week and need at least 14 hours of leisure time.