Spatial Implications of Telecommuting

76 Pages Posted: 29 Jan 2021 Last revised: 18 Jul 2022

See all articles by Matt Delventhal

Matt Delventhal

Claremont McKenna College - Robert Day School of Economics and Finance

Andrii Parkhomenko

University of Southern California - Marshall School of Business

Date Written: December 9, 2020

Abstract

We build a quantitative spatial model in which some workers can substitute on-site effort with work done from home. Ability and propensity to telecommute vary by education and industry. We quantify our framework to match the distribution of jobs and residents across 4,502 U.S. locations. A permanent increase in the attractiveness of telework results in a rich non-monotonic pattern of reallocations within and across cities. Workers who can telecommute experience welfare gains, and those who cannot suffer losses. Broader access to jobs reduces inequality across residential locations. Our framework robustly predicts changes in residents and housing prices observed 2019--2021.

Keywords: Covid-19, urban, work at home, commuting, spatial equilibrium

JEL Classification: E24, J81, R23, R41

Suggested Citation

Delventhal, Matt and Parkhomenko, Andrii, Spatial Implications of Telecommuting (December 9, 2020). Available at SSRN: https://ssrn.com/abstract=3746555 or http://dx.doi.org/10.2139/ssrn.3746555

Matt Delventhal

Claremont McKenna College - Robert Day School of Economics and Finance ( email )

500 E. Ninth St.
Claremont, CA 91711-6420
United States

Andrii Parkhomenko (Contact Author)

University of Southern California - Marshall School of Business ( email )

701 Exposition Blvd, HOH 431
Los Angeles, CA California 90089-1424
United States

HOME PAGE: http://www.andrii-parkhomenko.net/

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