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The Zoom city: working from home, urban productivity and land use

Author

Listed:
  • Efthymia Kyriakopoulou
  • Pierre M Picard

Abstract

This article investigates the impact of working from home (WFH) on the emergence and structure of monocentric cities. In the long run, WFH raises urban productivity only in sufficiently large cities. Business land rents fall while residential land rents decrease near the business district. Workers have incentives to adopt inefficiently high WFH schemes. In the short run, WFH yields mixed benefits for commuters and firms, which corroborates the low WFH adoption before the pandemic. Advances in digital technology increase the welfare benefits of WFH. Calibration exercises on European capital cities shed light on the quantitative impact of WFH.

Suggested Citation

  • Efthymia Kyriakopoulou & Pierre M Picard, 2023. "The Zoom city: working from home, urban productivity and land use," Journal of Economic Geography, Oxford University Press, vol. 23(6), pages 1397-1437.
    • Handle: RePEc:oup:jecgeo:v:23:y:2023:i:6:p:1397-1437.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbad025
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    Citations

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    Cited by:

    1. Kazufumi Tsuboi, 2022. "Shifting to Telework and Firms' Location: Does Telework Make Our Society Efficient?," Papers 2212.00934, arXiv.org.
    2. Steven Bond-Smith & Philip McCann, 2022. "The work-from-home revolution and the performance of cities," Working Papers 2022-6, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    3. Luca, Davide & Özgüzel, Cem & Wei, Zhiwu, 2024. "The spatially uneven diffusion of remote jobs in Europe," LSE Research Online Documents on Economics 122651, London School of Economics and Political Science, LSE Library.
    4. Behrens, Kristian & Kichko, Sergei & Thisse, Jacques-Francois, 2024. "Working from home: Too much of a good thing?," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    5. Nilsson, Pia & Johansson, Eleanor & Larsson, Johan P & Naldi, Lucia & Westlund, Hans, 2024. "Commuting longer to reach the workplace: evidence from pandemic lockdowns," Working Paper Series in Economics and Institutions of Innovation 498, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    6. Luca, Davide & Özgüzel, Cem & Wei, Zhiwu, 2024. "The new geography of remote jobs in Europe," LSE Research Online Documents on Economics 123880, London School of Economics and Political Science, LSE Library.
    7. Jinwon Kim & Dede Long, 2022. "What Flattened the House-Price Gradient? The Role of Work-from-Home and Decreased Commuting Cost," Working Papers 2205, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).

    More about this item

    Keywords

    Working from home; urban structure; commuting; remote work; land use;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R49 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Other
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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