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Castilla and Rho also used natural language processing to count the frequency of stereotypically feminine and masculine words in the ads, based on terms made use of in previous studies. Decreasing α in the job search model increases accepted wages and commute by way of two channels, connected to the rotation and the shift of the reservation curve, respectively. The rotation of the reservation wage curve—holding reservation utility constant—implies that the fraction of jobs accepted additional away from dwelling increases. Simply because further-away jobs pay far more, the rotation implies each an increase in wage and commute. In addition, lowering α increases the utility when employed and therefore the reservation utility.

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Controlling for workers’ fixed effects, we locate that the elasticity of posted wages with respect to commute is considerably stronger for women than for guys. The link between this estimated elasticity and the WTP parameter is not as direct as above, because Business women jobs the regression is on applied vacancies only. All observations are above the reservation wage curve, which will yield elasticity estimates smaller sized than the WTP parameter. We view this physical exercise as a qualitative robustness test, which permits us to conveniently handle for workers’ unobserved heterogeneity.

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