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Work-from-home, relocation, and shadow effects: Evidence from Sweden

Author

Listed:
  • Lina Bjerke

    (Jönköping International Business School)

  • Steven Bond-Smith

    (University of Hawai‘i at MÄ noa, University of Hawai‘i Economic Research Organization)

  • Philip McCann

    (The University of Manchester and The Productivity Institute)

  • Charlotta Mellander

    (Jönköping International Business School)

Abstract

In this paper, we explore some little-known, but significant, economic geography features of the work-from-home (WFH) revolution. The increased practice of work from home following the pandemic has prompted a redistribution of working populations between urban and rural locations. Using a uniquely detailed and comprehensive individual-level nationwide Swedish micro-dataset, we analyze shifts in commuting distances pre- and post-pandemic and explore the association between teleworkability and changes in these distances. Teleworkability alone does not significantly influence the distance between home and work municipalities, yet we observe heterogeneity in the responses. As well as the widely-documented centrifugal ‘donut’-type spread effects localized within cities, our empirical work demonstrates that the work-from-home revolution also engenders a significant centripetal spatial ‘pull’ effect of large cities, as their hinterland shadow effects are magnified by the work-from-home revolution. This latter effect, which encourages workers to locate closer to the metropolitan areas, has not previously been seen or understood.

Suggested Citation

  • Lina Bjerke & Steven Bond-Smith & Philip McCann & Charlotta Mellander, 2024. "Work-from-home, relocation, and shadow effects: Evidence from Sweden," Working Papers 2024-3, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    • Handle: RePEc:hae:wpaper:2024-3
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    References listed on IDEAS

    as
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    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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