Work from Home
Paper Session
Sunday, Jan. 4, 2026 8:00 AM - 10:00 AM (EST)
- Chair: Jacob Sagi, University of North Carolina-Chapel Hill
Work From Home in Ricardian Cities
Abstract
The literature on WFH is primarily empirical and has been somewhat limited by sources of data to surveys of workers. This study uses data on office building attendance rates, across thousands of buildings, weekly, since just before the onset of Covid. We know where each building is located and are able to blend this with Government Lodes records and BLS zip level data on industry mix.The paper models attendance at work as a longer run decision made by workers that are also selecting both a residence and workplace location within a city. In a Ricardian spatial equilibrium residential rent must then compensate workers across both choices of location as well as their chosen rate of job attendance. Firms, pay workers the value of their productivity which varies over space. Output per worker depends on both “external” and “internal” agglomeration.
Residential Ricarding rent will have to compensate workers both for variation in their productivity as well as commuting costs. Firm Ricardian rent will have to compensate employers for spatial productivity differences that arise both from external agglomeration as well as worker attendance. The predictions of the theoretical section line up quite well with our empirical work.
Work from Home and Spatial Misallocation
Abstract
I study whether the recent shift towards work from home (WFH) in the US alleviates or exacerbates the impact of existing policy distortions—progressive taxation and housing supply restrictions—on the aggregate level of output and inequality. These policies divert labour towards less productive locations, hurting aggregate productivity. In principle, WFH can alleviate this misallocation by allowing workers to supply their labour to high-productivity cities while living in more affordable areas and paying lower income taxes. In turn, firms in high-productivity cities can substitute in-person labour with cheaper remote workers. However, WFH may also exacerbate the misallocation, as remote work remains subject to relatively high tax rates and is complementary to in-person labour. Using a spatial equilibrium model calibrated with US Census data, I find that the shift to WFH does not change the distortionary effect of housing regulations, but it increases the distortionary effect of progressive taxation. In particular, adopting a flat tax scheme yields an additional 0.5pp output increase in the economy with the WFH shift, relative to the economy in 2019. However, this greater productivity gain comes at the cost of additional inequality between college- and non-college-educated workers, compared to the 2019 economy, as lower-skilled workers have less access to remote work. Thus, WFH intensifies the spatial equity-productivity trade-off, underscoring the need for more nuanced tax policy.(Sub)Urbanization of Commercial Real Estate Development from 1980 to 2020
Abstract
We describe the spatial evolution of commercial real estate development from 1980 to 2020. Using geolocated construction year data, we identify trends in within-city development locations and potential drivers of urban versus suburban development decisions in major US cities. We find substantial suburbanization trends in CRE development up to the turn of the last century with a shift towards the re-urbanization of multifamily, office, and retail beginning in the 2000s. The suburbanization trend is strongest for large and medium sized car-oriented cities whereas later urbanization is more prominent in large transit-oriented cities. The location of new multifamily and office development is highly sensitive to changes in the suburbanization of residential population, within-city travel speeds, and the migration of college educated workers to central cities.Discussant(s)
Yichen Su
,
Southern Methodist University
Vrinda Mittal
,
University of North Carolina-Chapel Hill
Morris Davis
,
Rutgers University
Jack Liebersohn
,
University of California-Irvine
JEL Classifications
- R2 - Household Analysis
- R1 - General Regional Economics