Until now, digitalisation has coincided with substantial growth in ‘superstar’ cities. However, the pandemic has shown that working from home (WFH) is feasible and, for many, has gone better than expected. And so, will the unexpected transition to remote work lead to a permanent reallocation of employment opportunities across regions?
To answer this question, a new NBER working paper examines migration patterns and housing and rental prices within and across US cities during the pandemic. Specifically, the authors determine whether Covid-19 has moved individuals away from the cities in which they work, thereby making it more likely that the full-time WFH model will persist. In doing so, they look at Zillow and US Postal Service (USPS) data to find:
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