The paper finds that while work-from-home (WFH) is highly valued (worth 8% of wages) and more accessible to higher earners—suggesting increased inequality—the lower wage growth for WFH workers offsets this. Consequently, there’s no overall change in compensation inequality but a substantial increase in total compensation.
*** R&R Review of Economic Studies***Working from home leads to a 4% decrease in neighborhood burglaries for every 9.5pp increase in WFH. This is attributed to burglars avoiding occupied homes and increased surveillance (“eyes on the street”). High WFH areas, especially with prior burglary risks, see increased property value.
Remote work reshapes where workers spend time, impacting local personal service demand in England and Wales. A 20% drop in commuting leads to a 7% LPS spending fall. City centres see the largest spending reductions, while increases are widespread. Less affluent areas see fewer remote work benefits.
Covid Economics The ‘Zoomshock’, a result of Covid-19, pushed work into homes, reshaping local service demand. Examining UK data, we find: substantial worker mobility, declining activity in city centres, and a move to suburbs with fewer local services. We discuss post-Covid employment and economic recovery.