> The companies should stop ignoring the cost of commuting to society, the environment, and personal (from work-life balance, to family) just because they don’t get to pay for it.
Why would a profit-maximizing firm not ignore externalities it creates?
The solution is that they should pay for them; the personal ones they do as long as there is competition for employees, but the social/environmental ones need to be internalized via Pigovian taxation.
Why would a profit-maximizing firm not ignore externalities it creates?
The solution is that they should pay for them; the personal ones they do as long as there is competition for employees, but the social/environmental ones need to be internalized via Pigovian taxation.