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Remote working and the new geography of local service spending

Author

Listed:
  • De Fraja, Gianni
  • Matheson, Jesse
  • Mizen, Paul
  • Rockey, James
  • Taneja, Shivani

Abstract

Remote working, at least some of the time, has rapidly become the new norm in many sectors. Remote working changes where workers spend much of their time, and because of this, it also changes the geographical location of demand, particularly in sectors which supply local personal services (LPS). We quantify this change for England and Wales. To do this, we use a bespoke, nationally representative, survey of nearly 35,000 working age adults, which predicts long-term changes in remote working and in LPS spending while at work. On average, we find that a neighbourhood to which people commute 20% less often experiences a decline in LPS spending of 7%. There is a clear geographic pattern to these spending changes: large decreases in LPS demand are concentrated in a small number of city-centre neighbourhoods, while increases in LPS demand are more uniformly distributed. Further analysis of neighbourhoods geographical and socio-demographic characteristics shows the least affluent neighbourhoods see least benefit from remote work.

Suggested Citation

  • De Fraja, Gianni & Matheson, Jesse & Mizen, Paul & Rockey, James & Taneja, Shivani, 2022. "Remote working and the new geography of local service spending," CEPR Discussion Papers 17431, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17431
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    More about this item

    Keywords

    Remote working; Work-from-home; Local labour markets; Local personal services; Retail industry; Hospitality industry;
    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)
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management

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