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The New Geography of Labor Markets

Author

Listed:
  • Mert Akan
  • Jose Maria Barrero
  • Nicholas Bloom
  • Thomas Bowen
  • Shelby R. Buckman
  • Steven J. Davis
  • Hyoseul Kim

Abstract

We use matched employer-employee data to study where Americans live in relation to employer worksites. Mean distance from employee home to employer worksite rose from 15 miles in 2019 to 26 miles in 2023. Twelve percent of employees hired after March 2020 live at least fifty miles from their employers in 2023, triple the pre-pandemic share. Distance from employer rose more for persons in their 30s and 40s, in highly paid employees, and in Finance, Information, and Professional Services. Among persons who stay with the same employer from one year to the next, we find net migration to states with lower top tax rates and areas with cheaper housing. These migration patterns greatly intensify after the pandemic and are much stronger for high earners. Top tax rates fell 5.2 percentage points for high earners who stayed with the same employer but switched states in 2020. Finally, we show that employers treat distant employees as a more flexible margin of adjustment.

Suggested Citation

  • Mert Akan & Jose Maria Barrero & Nicholas Bloom & Thomas Bowen & Shelby R. Buckman & Steven J. Davis & Hyoseul Kim, 2025. "The New Geography of Labor Markets," NBER Working Papers 33582, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:33582
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    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General

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