Zoomshock: The Geography and Local Labour Market Consequences of Working from Home

Covid Economics, Issue 64, 13 January 2021, 1-41

64 Pages Posted: 23 Dec 2020 Last revised: 18 Jan 2021

See all articles by Gianni De Fraja

Gianni De Fraja

University of Nottingham

Jesse Matheson

University of Sheffield

James Rockey

University of Birmingham - Department of Economics

Date Written: December 21, 2020

Abstract

The increase in the extent of working-from-home determined by the COVID-19 health crisis has led to a substantial shift of economic activity across geographical areas; which we refer to as a Zoomshock. When a person works from home rather than at the office, their work-related consumption of goods and services provided by the locally consumed service industries will take place where they live, not where they work. Much of the clientèle of restaurants, coffee bars, pubs, hair stylists, health clubs, taxi providers and the like located near workplaces is transferred to establishment located near where people live. In this paper we measure the Zoomshock at a very granular level by estimating the change in the number of people working in UK neighbourhoods due to home-working.

Keywords: COVID-19, lockdown, work-from-home, local labour markets, teleworking

JEL Classification: R12, J01, H12

Suggested Citation

De Fraja, Gianni and Matheson, Jesse and Rockey, James Charles, Zoomshock: The Geography and Local Labour Market Consequences of Working from Home (December 21, 2020). Covid Economics, Issue 64, 13 January 2021, 1-41, Available at SSRN: https://ssrn.com/abstract=3752977 or http://dx.doi.org/10.2139/ssrn.3752977

Gianni De Fraja

University of Nottingham ( email )

University Park
Nottingham, NG8 1BB
United Kingdom

Jesse Matheson

University of Sheffield ( email )

9 Mappin Street
Sheffield, S1 4DT
United Kingdom

HOME PAGE: http://sites.google.com/sheffield.ac.uk/jessematheson

James Charles Rockey (Contact Author)

University of Birmingham - Department of Economics ( email )

University House
University of Birmingham
116 Edgbaston Park Rd, Birmingham B15 2TY
United Kingdom

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