Paying People to Move: Remote Worker Relocation Programs and Local Fiscal Dynamics” (with Chao Fu and Jesse Gregory)

Abstract:

We examine how place-based incentives alter the location choices of remote workers, whose residential locations are no longer tied to their workplaces and its implications on local fiscal dynamics. Using novel data from MakeMyMove---an online marketplace connecting remote workers with communities offering relocation incentives---we exploit variation in program implementation and offer receipt to estimate their effects on application behavior and relocation decisions. We find that remote workers are more likely to apply to programs with higher cash incentives and more comprehensive in-kind benefits, particularly coworking space access. Using a winner-loser design, we find that receiving an offer increases relocation to program jurisdictions sevenfold among single-program applicants. Based on the high location elasticity of remote workers, we demonstrate that remote worker relocation programs can prevent local economies experiencing adverse shocks from slipping into a fiscal death spiral.

Website:  Hoyoung Yoo