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The Geography of Remote Work / Lukas Althoff, Fabian Eckert, Sharat Ganapati, Conor Walsh.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Althoff, Lukas.
Contributor:
Eckert, Fabian.
Ganapati, Sharat.
Walsh, Conor (Conor Andrew)
National Bureau of Economic Research.
Series:
Working Paper Series (National Bureau of Economic Research) no. w29181.
NBER working paper series no. w29181
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2021.
Summary:
Big city economies specialize in business service industries whose workers' local spending in turn supports a large local consumer service industry. Business service jobs have a high remote work potential. If remote work becomes more prevalent, many business service workers may leave expensive cities and work from elsewhere withdrawing spending from the local non-tradable service industries dependent on their demand. We use the recent COVID-19-induced increase in remote work to test for the strength of this mechanism and find it to be strong. As a result, low-skill service workers in big cities bore most of the pandemic's economic impact. Our findings have broader implications for the distributional consequences of the US economy's transition to more remote work.
Notes:
August 2021.
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