Assessing the Labor Market Consequences of Geographic Shifts Driven by Remote Worker Relocation Programs

Since 2018, over 80 U.S. municipalities have introduced Remote Worker Relocation Programs to attract remote workers and revitalize local economies. Despite their growing popularity, their broader labor market impacts, including potential spillover effects on non-participating regions, remain unclear. This project will investigate who these relocated remote workers are, along with their location elasticity estimates with respect to subsidies, and the broader economic consequences of these remote workers’ geographic reallocation. Leveraging data from MakeMyMove—a unique platform connecting remote workers with communities—and People Data Lab, it will employ a staggered difference-in-differences approach and build a theoretical framework incorporating agglomeration and congestion forces. The findings will offer insights into how these programs shape economic efficiency and equity, guiding policymakers.