Disutility caused by remote work in urban system

Hiroki Aizawa and Takuhiro Saka

MPRA Paper from University Library of Munich, Germany

Abstract: Remote work can affect population distribution in an urban system (i.e., a chain of cities). The current paper explores the effects of remote work on population distribution in an urban system, welfare, and utilities of workers. To examine these effects, we explore the equilibria of a New Economic Geography model that expresses remote workers. We elucidate the bifurcation mechanism of the full agglomeration in a narrow corridor with NEG models with two industries and remote work in order to investigate the effect of remote work on equilibrium. We demonstrate that the introduction of remote work can decrease the utilities of workers. We show that remote workers with myopic behavior themselves decrease their own utilities. With myopic behavior, it is not necessarily ensured that remote workers can obtain higher utilities compared to those with population distribution before the introduction of remote work.

Keywords: Agglomeration; Bifurcation; Economic geography; Remote work; Welfare (search for similar items in EconPapers)
JEL-codes: R12 R14 (search for similar items in EconPapers)
Date: 2024-12-08
New Economics Papers: this item is included in nep-geo, nep-upt and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:122913

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