It is generally found that workers are more inclined to accept a job that is located farther away from home if they have the ability to work from home one day a week or more (telecommuting). Such findings inform us about the effectiveness of telecommuting policies that try to alleviate congestion and transport-related emissions, but they also stress that the geography of labour markets is changing due to information technology. We argue that estimates of the effect of working from home on commuting time may be biased because of sorting based on residential-and commuting preferences. In this paper we investigate the relationship between telecommuting and commuting time, controlling for preference-based sorting. We use 7 waves of data from the Dutch Labour Supply Panel and show that on average telecommuters have higher marginal cost of one-way commuting time, compared to non-telecommuters. We estimate the effect of telecommuting on commuting time using a fixed effects approach, and we show that preference-based sorting biases cross-sectional results upwards. This suggests that the bias due to sorting based on residential preferences is strongest. Working from home allows people to accept 5% longer commuting times on average, and every additional 8 h of working from home are associated with 3.5% longer commuting times. JEL Classification R11 • R41 • J32 B Duco de Vos

Despite the many uncertainties of life in cities, promises of economic prosperity, social mobility and happiness have fuelled the imagination of generations of urban migrants in search of a better life. Access to jobs, housing and amenities, and fewer restrictions of personal choices are some of the perceived advantages of cities, characterised here as 'urban promises'. But while discourses celebrating the triumph of cities became increasingly common, urban rewards are not available everywhere and for everyone. Alongside opportunity, cities offer inequality, conflict and poor living conditions. Their narrative of promise has been persistent across different times and places, but the outcomes and experiences of urban life compare poorly with the overoptimistic expectations of many newcomers. And yet, millions still come and stay regardless of odds, raising the question why we have such positive and persistent expectations about cities. To examine this question, this paper considers the process of urban migration from the perspective of decisionmaking under uncertainty. It discusses how decisions and evaluations are based on imperfect information and offers a novel contribution by examining how the cognitive biases and heuristics which restrict human rationality shape our responses to urban promises. This approach may allow a better understanding of how people make decisions regarding urban migration, how they perceive their urban experiences and evaluate their life stories. We consider the prospects and limitations of the behavioural approach and discuss how biases favouring narratives of bright urban futures can be exploited by 'triumphalist' accounts of cities which neglect their embedded injustices.

Borrowed size refers to the idea that small cities near larger metropolitan centres can reap the advantages of large agglomerations, but without the costs of agglomeration. The study explores whether broadband internet helps such smaller cities to enjoy the labour market benefits of a larger city. Using Swedish micro-data from 2007 to 2015, together with unique data on broadband, suggestive evidence is found that broadband indeed allows smaller cities to reap such benefits. Borrowed size is primarily driven by the overall penetration of broadband in the place of residence, rather than by broadband availability at the residence.

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