How the rise of teleworking will reshape labor markets and cities?

Gokan Toshitaka, Sergey Kichko, Jesse Matheson and Jacques Thisse

No 868, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: M otivated by empirical evidence, we propose a model of the monocentric city with he terogeneous workers and teleworking. We show that increased teleworking flattens t he land-rent gradient and eventually moves skilled workers from the city center to the c ity’s periphery. Unskilled workers move from the local services sector into final goods and wage inequality between skilled and unskilled workers increases. Extending t he model to two cities, teleworking increases housing prices in the less productive city r elative to the more productive city, with implications for unskilled workers in both c ities. Empirical evidence from housing prices in England are consistent with this r esult.

Keywords: telecommuting|working; from; home|gentrified; cities|doughnut; cities|inter-city; commuting (search for similar items in EconPapers)
JEL-codes: J60 R00 (search for similar items in EconPapers)
Date: 2022-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 868. 2022-10

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https://ir.ide.go.jp/record/53514/files/IDP000868_001.pdf First version, 2022 (application/pdf)

Related works:
Working Paper: How the rise of teleworking will reshape labor markets and cities (2024)
Working Paper: How the Rise of Teleworking Will Reshape Labor Markets and Cities (2022)
Working Paper: How the rise of teleworking will reshape labor markets and cities (2022)
Working Paper: How the rise of teleworking will reshape labor markets and cities (2022)
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