Many argue that the big and sudden shift to work from home following the pandemic can lead to large and lasting geographical effects in terms of where we choose to live and work. This is one of the first studies that explicitly analyses how the potential for remote work at the individual level affects migration patterns of those living and working in metropolitan city centres.

Abstract

The empirical analysis focuses on Stockholm City and workers who continue to work in the city centre but who may or may not choose to move their residence outside of Stockholm. The analysis is based on detailed population-wide microdata and covers the period 2016–2023.

The results indicate that workers in remote work compatible jobs are more inclined to make counter-urban moves after the start of the pandemic. This is particularly true for managers and professionals in occupations that can be done from home and pertains especially for moves to medium-sized cities and small cites/rural areas. Although the estimated marginal effects are small in absolute size, they represent more than a doubling of the baseline probability of making a long-distance move.

The findings suggest that the shift to remote work arrangements after the pandemic have enabled managers and professionals with jobs that can be done remotely to move their residence beyond the metropolitan region and combine work from home with occasional long-distance commuting to their city centre workplace.