Take It Easy! How Flexible Work Arrangements Bust the Commuting Life Satisfaction Nexus

ABSTRACT Commuting to work can negatively affect people's well‐being. This paper analyzes the effect of commuting distance on subjective well‐being for employees under different work time regimes. The analysis is based on data from the German Socio‐Economic Panel (GSOEP) for 2003–2021. The causal effect of commuting distance is identified by quasi‐experimental changes for employees who experience firm relocation. Accounting for idiosyncratic unobserved effects, the results suggest that the loss in life satisfaction is about two and a half times higher for employees in non‐flexible work arrangements than for those in a flexible work regime.