Implications of remote working adoption on place based policies : a focus on G7 countries

Description

Foreword Acknowledgements Executive Summary Findings and policy takeaways From the pandemic Looking towards the post-pandemic world 1 Effects of COVID-19 on geographic mobility and working habits Mobility trends and patterns using Google mobility data Data sources and processing Overall mobility trends in G7 countries Mobility trends in large regions in G7 countries Rural-urban differences using Mapbox activity data Data sources and processing National trends in activity Metropolitan/non-metropolitan differences in Germany and the US Rural-urban differences in activity in Germany and the US Conclusions References Notes Annex 1.A. Mobility in TL2 regions and Strictness of lockdown policies 2 Remote Work and the New Normality Permanent movement to non-metropolitan regions How is remote work distributed across regions? Characteristics of rural regions and remote working Access to Digital Infrastructure Female employment and remote work Education and remote work occupations The remote work potential in regions References Notes 3 Labour markets in the new normality Introduction Who can work from home? Remote working capacity varies significantly across industries and occupations Education of the workforce and its remote working potential go hand in hand Remote working potential increases with wages Unequal labour market effects of the pandemic: the case of the United States The pandemic affected the U.S. labour market deeply The short-run impact of COVID-19: An econometric analysis Remote working shielded workers against the adverse effect of the crisis Individuals with higher remote working potential were affected less severely Going beyond the pandemic: Rebuilding an inclusive labour market Remote working will be part of the future Conclusion References Notes Annex 3.A. Technical Appendix Definitions of variables Descriptive statistics Regression results 4 Post-COVID-19 spatial effects and policy responses for G7 countries Introduction COVID-19’s effects on remote working and on the spatial distribution of people and firms Working remotely will likely persist but under a hybrid model Benefits and challenges of remote working Net impact of remote working on productivity remains uncertain with signs for optimism The increasing acceptability of hybrid remote working Digitalisation and working from home might improve the attractiveness of low density populated areas Cities have historically been the most attractive places for firms and workers… … But increasing adoption of remote working can reduce the appeal of cities The appeal of cities is dwindling While the appeal of places with low population density increasing Yet, a permanent outmigration from cities is unlikely and undesirable. Four scenarios of the distribution of settlement pattern in the post-COVID-19 world In summary G7 policies to seize benefits from remote working Policies to capture the benefits of remote working for people, places and firms. Complementary investments for remote working Overcoming cultural and legal hurdles for remote working Mitigate potential side effects of remote working Some policies are actively setting up incentives to attract firms and workers to non-metropolitan regions Japan’s teleworking policy: an active strategy to balance the distribution of settlements across the territory. Cities are also adapting to become better places to live and work Policy takeaways Enabling factors to make non-metropolitan regions attractive places for people and firms Government strategies to improve digitalisation in non-metropolitan regions Digitalisation contributes to making non-metropolitan areas economically competitive and increasing well-being Policy takeaways Improving access to basic services (education and health) will increase non-metropolitan regions’ attractiveness Policy takeaways References Note