Remote Working and the New Geography of Local Service Spending

38 Pages Posted: 4 Aug 2022

See all articles by Gianni De Fraja

Gianni De Fraja

University of Nottingham

Jesse Matheson

University of Sheffield

Paul Mizen

University of Nottingham; Bank of England; Centre for Economic Policy Research (CEPR)

James Rockey

University of Birmingham - Department of Economics

Shivani Taneja

University of Nottingham

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Abstract

Remote working, at least some of the time, has rapidly become the new norm in many sectors. Remote working changes where workers spend much of their time, and because of this, it also changes the geographical location of demand, particularly in sectors which supply local personal services (LPS). We quantify this change for England and Wales. To do this, we use a bespoke, nationally representative survey of nearly 35,000 working age adults, which predicts long-term changes in remote working and in LPS spending while at work. On average, we find that a neighbourhood to which people commute 20\% less often experiences a decline in LPS spending of 7\%. There is a clear geographic pattern to these spending changes: large decreases in LPS demand are concentrated in a small number of city-centre neighbourhoods, while increases in LPS demand are more uniformly distributed.  Further analysis of neighbourhoods geographical and socio-demographic characteristics shows the least affluent neighbourhoods see least benefit from remote work.

Keywords: Remote working, Work-from-home, Local labour markets, Local personal services, Retail industry, Hospitality industry

Suggested Citation

De Fraja, Gianni and Matheson, Jesse and Mizen, Paul and Rockey, James Charles and Taneja, Shivani, Remote Working and the New Geography of Local Service Spending. Available at SSRN: https://ssrn.com/abstract=4181982

Gianni De Fraja

University of Nottingham ( email )

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Jesse Matheson

University of Sheffield ( email )

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Paul Mizen

University of Nottingham ( email )

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Bank of England

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Centre for Economic Policy Research (CEPR)

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James Charles Rockey (Contact Author)

University of Birmingham - Department of Economics ( email )

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Shivani Taneja

University of Nottingham ( email )

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Nottingham, NG7 2RD
United Kingdom

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