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Intercity Impacts of Work-from-Home with Both Remote and Non-Remote Workers

Author

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  • Jan K. Brueckner
  • S. Sayantani

Abstract

This paper summarizes the results from generalizing the simple two-city WFH model of Brueck-ner, Kahn and Lin (2021) through the addition of a group of non-remote workers, who must live in the city where they work. The results show that the main qualitative conclusions of BKL regarding the intercity effects of WFH are unaffected by this modification, with WFH yielding the same aggregate population and employment changes in the two cities and the same house-price and wage effects as in the simpler model. This conclusion is useful because it establishes the robustness of BKL’s highly parsimonious model.

Suggested Citation

  • Jan K. Brueckner & S. Sayantani, 2022. "Intercity Impacts of Work-from-Home with Both Remote and Non-Remote Workers," CESifo Working Paper Series 9793, CESifo.
    • Handle: RePEc:ces:ceswps:_9793
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp9793.pdf
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    References listed on IDEAS

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    1. Alexander W. Bartik & Zoe B. Cullen & Edward L. Glaeser & Michael Luca & Christopher T. Stanton, 2020. "What Jobs are Being Done at Home During the Covid-19 Crisis? Evidence from Firm-Level Surveys," NBER Working Papers 27422, National Bureau of Economic Research, Inc.
    2. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    3. Jan K. Brueckner & Matthew E. Kahn & Gary C. Lin, 2023. "A New Spatial Hedonic Equilibrium in the Emerging Work-from-Home Economy?," American Economic Journal: Applied Economics, American Economic Association, vol. 15(2), pages 285-319, April.
    4. Althoff, Lukas & Eckert, Fabian & Ganapati, Sharat & Walsh, Conor, 2022. "The Geography of Remote Work," Regional Science and Urban Economics, Elsevier, vol. 93(C).
    5. Dingel, Jonathan I. & Neiman, Brent, 2020. "How many jobs can be done at home?," Journal of Public Economics, Elsevier, vol. 189(C).
    6. 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).
    7. Erik Brynjolfsson & John J. Horton & Adam Ozimek & Daniel Rock & Garima Sharma & Hong-Yi TuYe, 2020. "COVID-19 and Remote Work: An Early Look at US Data," NBER Working Papers 27344, National Bureau of Economic Research, Inc.
    8. Delventhal, Matthew J. & Kwon, Eunjee & Parkhomenko, Andrii, 2022. "JUE Insight: How do cities change when we work from home?," Journal of Urban Economics, Elsevier, vol. 127(C).
    9. Rhee, Hyok-Joo, 2008. "Home-based telecommuting and commuting behavior," Journal of Urban Economics, Elsevier, vol. 63(1), pages 198-216, January.
    10. William Larson & Weihua Zhao, 2017. "Telework: Urban Form, Energy Consumption, And Greenhouse Gas Implications," Economic Inquiry, Western Economic Association International, vol. 55(2), pages 714-735, April.
    11. Safirova, Elena, 2002. "Telecommuting, traffic congestion, and agglomeration: a general equilibrium model," Journal of Urban Economics, Elsevier, vol. 52(1), pages 26-52, July.
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    Citations

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    Cited by:

    1. David R. Agrawal & Aline Bütikofer, 2022. "Public finance in the era of the COVID-19 crisis," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1349-1372, December.
    2. Gokan,Toshitaka & Kichko,Sergei & Matheson,Jesse A & Thisse,Jacques-François, 2022. "How the rise of teleworking will reshape labor markets and cities?," IDE Discussion Papers 868, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. IHARA Ryusuke, 2023. "Returning to the City Center: The spread of teleworking and urban structure," Discussion papers 23064, Research Institute of Economy, Trade and Industry (RIETI).
    4. 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).
    5. David R. Agrawal & Jan K. Brueckner, 2022. "Taxes and Telework: The Impacts of State Income Taxes in a Work-from-Home Economy," CESifo Working Paper Series 9975, CESifo.

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    More about this item

    Keywords

    work-from-home; remote work; amenities; productivity;
    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)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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