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Zoomshock: The geography and local labour market consequences of working from home

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Listed:
  • Gianni De Fraja

    (University of Nottingham)

  • Jesse Matheson

    (University of Sheffield)

  • James Rockey

    (University of Birmingham)

Abstract

The increase in the extent of working-from-home determined by the Covid-19 health crisis has led to a substantial shift of economic activity across geographical areas; which we refer to as a Zoomshock. When a person works from home rather than at the office, their work-related consumption of goods and services provided by the locally consumed service industries will take place where they live, not where they work. Much of the client`ele of restaurants, coffee bars, pubs, hair stylists, health clubs, taxi providers and the like located near workplaces is transferred to establishment located near where people live. In this paper we measure the Zoomshock at a very granular level by estimating the change in the number of people working in UK neighbourhoods due to home-working.

Suggested Citation

  • Gianni De Fraja & Jesse Matheson & James Rockey, 2020. "Zoomshock: The geography and local labour market consequences of working from home," Discussion Papers 20-31, Department of Economics, University of Birmingham.
    • Handle: RePEc:bir:birmec:20-31
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    Cited by:

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    2. Gupta, Arpit & Mittal, Vrinda & Peeters, Jonas & Van Nieuwerburgh, Stijn, 2022. "Flattening the curve: Pandemic-Induced revaluation of urban real estate," Journal of Financial Economics, Elsevier, vol. 146(2), pages 594-636.
    3. Bruno P. Carvalho & Susana Peralta & João Pereira dos Santos, 2022. "Regional and sectorial impacts of the Covid‐19 crisis: Evidence from electronic payments," Journal of Regional Science, Wiley Blackwell, vol. 62(3), pages 757-798, June.
    4. Ghinami, Francesca, 2023. "Effects of remote work on population distribution across cities: US evidence from a QSE model," SocArXiv krnzq, Center for Open Science.
    5. Toshitaka Gokan & Sergei Kichko & Jesse A. Matheson & Jacques-Francois Thisse, 2022. "How the Rise of Teleworking Will Reshape Labor Markets and Cities," CESifo Working Paper Series 9952, CESifo.
    6. Bergeaud, Antonin & Eyméoud, Jean-Benoît & Garcia, Thomas & Henricot, Dorian, 2023. "Working from home and corporate real estate," Regional Science and Urban Economics, Elsevier, vol. 99(C).
    7. Althoff, Lukas & Eckert, Fabian & Ganapati, Sharat & Walsh, Conor, 2022. "The Geography of Remote Work," Regional Science and Urban Economics, Elsevier, vol. 93(C).
    8. 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.
    9. Jesse Matheson & Brendon McConnell & James Rockey & Argyris Sakalis, 2023. "Do Remote Workers Deter Neighborhood Crime? Evidence from the Rise of Working from Home," Working Papers 2023020, The University of Sheffield, Department of Economics.
    10. Kristian Behrens & Sergey Kichko & Jacques-Francois Thisse & Sergei Kichko, 2021. "Working from Home: Too Much of a Good Thing?," CESifo Working Paper Series 8831, CESifo.
    11. Gilles Duranton & Jessie Handbury, 2023. "COVID and Cities, Thus Far," Economic Policy Review, Federal Reserve Bank of New York, vol. 29(2), pages 6-52, October.
    12. Richard Goulding & Adam Leaver & Jonathan Silver, 2023. "From homes to assets: Transcalar territorial networks and the financialization of build to rent in Greater Manchester," Environment and Planning A, , vol. 55(4), pages 828-849, June.
    13. Parkhomenko, Andrii & Delventhal, Matthew J, 2023. "Spatial Implications of Telecommuting in the United States," Institute of Transportation Studies, Working Paper Series qt97q6c2rg, Institute of Transportation Studies, UC Davis.
    14. Crescenzi, Riccardo & Giua, Mara & Rigo, Davide, 2022. "How many jobs can be done at home? Not as many as you think!," LSE Research Online Documents on Economics 117523, London School of Economics and Political Science, LSE Library.
    15. Stefanie Stantcheva, 2022. "Inequalities in the times of a pandemic," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 37(109), pages 5-41.
    16. Antonin Bergeaud & Jean-Benoît Eymeoud & Thomas Garcia & Dorian Henricot, 2022. "Working From Home and Corporate Real Estate," Post-Print hal-03548889, HAL.
    17. Bárcena-Martín, Elena & Molina, Julián & Muñoz-Fernández, Ana & Pérez-Moreno, Salvador, 2022. "Vulnerability and COVID-19 infection rates: A changing relationship during the first year of the pandemic," Economics & Human Biology, Elsevier, vol. 47(C).
    18. Karen Chapple & Laura Schmahmann, 2023. "Can we “Claim†the Workforce? A Labor-Focused Agenda for Economic Development in the Face of an Uncertain Future," Economic Development Quarterly, , vol. 37(1), pages 14-19, February.
    19. Antonin Bergeaud & Jean Benoit Eymeoud & Thomas Garcia & Dorian Henricot, 2022. "Working from home and corporate real estate," CEP Discussion Papers dp1831, Centre for Economic Performance, LSE.
    20. Paula Holland, 2021. "Will Disabled Workers Be Winners or Losers in the Post-COVID-19 Labour Market?," Disabilities, MDPI, vol. 1(3), pages 1-13, July.

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    More about this item

    Keywords

    Covid-19; lockdown; work-from-home; local labour markets;
    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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