Abstract
Commuting reimbursements affect mobility and the labour market. In this paper it is concluded that partially compensating the travel costs increases the commuting distance by 12.3 kilometre. Abolishing commuting reimbursements may lead to a reduction in commuting mileage of 15%. Additionally the theory of the relationship between commuting reimbursements and the labour market is examined. Reimbursement of travel costs is seen as part of the employment package (hours, wage, holidays and so on). Reducing (by taxation) or completely abolishing the compensation of travel costs may lead to a decrease in labour market participation and labour turnover.