>We commute because businesses can push off the cost of commuting to their employees.
This is a severe misunderstanding of the economics of the situation. Employees know that they're going to be spending time commuting, and they take that into account when they decide whether to take a job. In more academic terms-- that information is already informing the labor supply curve of which each individual is a part, and thus the market is already incorporating the information in the wages.
If you've ever taken microeconomics 101 then they'll probably have explained how it doesn't matter which side of the market, buyer or seller, pays a tax on business. The tax is incorporated into the price one way or another, whether it's the buyer or the seller that has to actually pony up the physical cash, and the actual tax burden of the two sides has nothing to do with who does that. The same principle applies to commuting, which is after all just a tax that the workers have to pay to the void when they have to wastefully sit around in their car.
It is not an externality, as an externality is strictly a cost that is borne primarily by parties outside of the transaction. The cost of a commute is external to the Company, but the labor market is two sided (employee/company) and the costs are therefore priced into the transaction appropriately.
This is true for the effect of the worker commuting on himself but the company does not have to pay any cost premium for the effect of the worker commuting on other people (and neither does the worker). That part (more traffic) is the externality.
This is a severe misunderstanding of the economics of the situation. Employees know that they're going to be spending time commuting, and they take that into account when they decide whether to take a job. In more academic terms-- that information is already informing the labor supply curve of which each individual is a part, and thus the market is already incorporating the information in the wages.
If you've ever taken microeconomics 101 then they'll probably have explained how it doesn't matter which side of the market, buyer or seller, pays a tax on business. The tax is incorporated into the price one way or another, whether it's the buyer or the seller that has to actually pony up the physical cash, and the actual tax burden of the two sides has nothing to do with who does that. The same principle applies to commuting, which is after all just a tax that the workers have to pay to the void when they have to wastefully sit around in their car.