The Polarisation of Remote Work
78 Pages Posted: 11 Oct 2021
Fabian Braesemann
University of Oxford - Oxford Internet Institute
Fabian Stephany
University of Oxford - Oxford Internet Institute; Bruegel; Alexander von Humboldt Institute for Internet and Society
Ole Teutloff
University of Copenhagen - Copenhagen Center for Social Data Science
Otto Kässi
Etla
Mark Graham
University of Oxford - Oxford Internet Institute
Vili Lehdonvirta
University of Oxford - Oxford Internet Institute; Aalto University - Department of Computer Science
Date Written: August 28, 2021
Abstract
The Covid-19 pandemic has led to the rise of remote work with consequences for the global division of work.
Remote work could connect labour markets, but it could also increase spatial polarisation. However, our understanding of the geographies of remote work is limited. Specifically, does remote work bring jobs to rural areas or is it concentrating in large cities, and how do skill requirements affect competition for jobs and wages? We use data from a fully remote labour market - an online labour platform - to show that remote work is polarised along three dimensions. First, countries are globally divided: North American, European, and South Asian remote workers attract most jobs, while many Global South countries participate only marginally. Secondly, remote jobs are pulled to urban regions; rural areas fall behind. Thirdly, remote work is polarised along the skill axis: workers with in-demand skills attract profitable jobs, while others face intense competition and obtain low wages.
The findings suggest that remote work is shaped by agglomerative forces, which are deepening the gap between urban and rural areas. To make remote work an effective tool for rural development, it needs to be embedded in local skill-building and labour market programmes.
Keywords: Remote work, Online labour, Platform economy, Geography, Polarisation
JEL Classification: F6, F16, J24, J31, L14, O15
Suggested Citation: Suggested Citation
Fabian Braesemann (Contact Author)
University of Oxford - Oxford Internet Institute ( email )
1 St Giles
University of Oxford
Oxford, Oxfordshire OX1 3JS
United Kingdom
Fabian Stephany
University of Oxford - Oxford Internet Institute ( email )
1 St. Giles
University of Oxford
Oxford OX1 3PG Oxfordshire, Oxfordshire OX1 3JS
United Kingdom
Bruegel ( email )
Rue de la Charité 33
B-1210 Brussels Belgium, 1210
Belgium
Alexander von Humboldt Institute for Internet and Society ( email )
Bebelplatz 1 | 10099
Berlin
Germany
Ole Teutloff
University of Copenhagen - Copenhagen Center for Social Data Science ( email )
Øster Farimagsgade 5A
University of Copenhagen
Copenhagen, 1353
Denmark
HOME PAGE: http://https://sodas.ku.dk/
Mark Graham
University of Oxford - Oxford Internet Institute ( email )
1 St. Giles
University of Oxford
Oxford, Oxfordshire OX1 3JS
United Kingdom
HOME PAGE: http://www.geospace.co.uk
Vili Lehdonvirta
University of Oxford - Oxford Internet Institute ( email )
1 St. Giles
University of Oxford
Oxford, Oxfordshire OX1 3JS
United Kingdom
HOME PAGE: http://www.oii.ox.ac.uk
Aalto University - Department of Computer Science ( email )
Espoo
Finland
HOME PAGE: http://diesl.eu/
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