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The Effect of Telecommuting on Suburbanization: Empirical Evidence

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  • Seetharam Sridhar, Kala
  • Sridhar, Varadharajan

Abstract

In the standard urban model, employment is concentrated in the Central Business District (CBD) and the locational choice of households is modeled solely on access to the employment center. Now, technology has facilitated the emergence of new office environments where work is done at unconventional locations that were earlier in the CBD. While the urban density function is not really new, in this study, we look at the effect of telecommuting, made possible by technology, on suburbanization, using data for U.S. metropolitan areas. We use population and household gradients as measures of suburbanization. For telecommuting indicators, we use data from Survey of Income Program and Participation (SIPP). We find support for the natural evolution theory of suburbanization. We find that telecommuting contributes to centralization of cities. We conclude that technology could be a complement, not a substitute for face-to-face interaction.

Suggested Citation

  • Seetharam Sridhar, Kala & Sridhar, Varadharajan, 2003. "The Effect of Telecommuting on Suburbanization: Empirical Evidence," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 33(1), pages 1-25.
    • Handle: RePEc:ags:jrapmc:132242
    DOI: 10.22004/ag.econ.132242
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    References listed on IDEAS

    as
    1. Mills, Edwin S., 1992. "The measurement and determinants of suburbanization," Journal of Urban Economics, Elsevier, vol. 32(3), pages 377-387, November.
    2. Nancy B. Kurland & Terri D. Egan, 1999. "Telecommuting: Justice and Control in the Virtual Organization," Organization Science, INFORMS, vol. 10(4), pages 500-513, August.
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    Cited by:

    1. Sridhar, Kala Seetharam, 2004. "Cities with suburbs: Evidence from India," Working Papers 04/23, National Institute of Public Finance and Policy.
    2. Sridhar, Kala Seetharan & Sridhar, Varadharajan, 2007. "Telecommunications Infrastructure And Economic Growth: Evidence From Developing Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 7(2), pages 37-56.
    3. Ghinami, Francesca, 2023. "Effects of remote work on population distribution across cities: US evidence from a QSE model," SocArXiv krnzq, Center for Open Science.
    4. repec:ind:nipfwp:14 is not listed on IDEAS
    5. Sridhar, Kala Seetharam, 2016. "Costs and Benefits of Urbanization: The Indian Case," ADBI Working Papers 607, Asian Development Bank Institute.
    6. Sridhar, Kala Seetharam, 2007. "Density gradients and their determinants: Evidence from India," Regional Science and Urban Economics, Elsevier, vol. 37(3), pages 314-344, May.
    7. repec:npf:wpaper:14 is not listed on IDEAS
    8. Chunhua Wang, 2010. "Falling commuting costs, amenity advantages, and suburbanization," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 45(2), pages 351-364, October.

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