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The Effect of Telecommuting on Suburbanization: Empirical Evidence

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  • Seetharam Sridhar, Kala
  • Sridhar, Varadharajan
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    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.

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    Bibliographic Info

    Article provided by Mid-Continent Regional Science Association in its journal Journal of Regional Analysis and Policy.

    Volume (Year): 33 (2003)
    Issue (Month): 1 ()
    Pages:

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    Handle: RePEc:ags:jrapmc:132242

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    Related research

    Keywords: Labor and Human Capital; Research and Development/Tech Change/Emerging Technologies;

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    Cited by:
    1. 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.
    2. repec:ind:nipfwp:14 is not listed on IDEAS
    3. Chunhua Wang, 2010. "Falling commuting costs, amenity advantages, and suburbanization," The Annals of Regional Science, Springer, vol. 45(2), pages 351-364, October.
    4. 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.

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