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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 new and significant economic geography features of the work-from-home (WFH) revolution. The increased practice of WFH 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 analyse shifts in commuting distances pre- and post-pandemic and explore their association with teleworkability. Beyond the well-documented centrifugal ‘donut’-type effects within cities, our study finds a significant centripetal ‘shadow’ effect on smaller cities. This phenomenon draws workers relocating from outside metropolitan regions closer to major urban areas, reinforcing urbanization trends contrary to the expectations of geographic decentralization enabled by remote work. These nuanced dynamics—highlighting simultaneous dispersion at the local level and concentration within the urban system—reveal new knowledge into the complex interplay between remote work, urbanization, and regional development.

Suggested Citation

  • Lina Bjerke & Steven Bond-Smith & Philip McCann & Charlotta Mellander, 2025. "Work-from-home, relocation, and shadow effects: Evidence from Sweden," Working Papers 2025-1, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    • Handle: RePEc:hae:wpaper:2025-1
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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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