Search

The Covid-19 pandemic has led to the rise of digitally enabled remote work with consequences for the global division of labour. Remote work could connect labour markets, but it might also increase spatial polarisation. However, our understanding of the geographies of remote work is limited. Specifically, in how far could remote work connect employers and workers in different countries? Does it bring jobs to rural areas because of lower living costs, or does it concentrate in large cities? And how do skill requirements affect competition for employment and wages? We use data from a fully remote labour market—an online labour platform—to show that remote platform work is polarised along three dimensions. First, countries are globally divided: North American, European, and South Asian remote platform workers attract most jobs, while many Global South countries participate only marginally. Secondly, remote jobs are pulled to large cities; rural areas fall behind. Thirdly, remote work is polarised along the skill axis: workers with in-demand skills attract profitable jobs, while others face intense competition and obtain low wages. The findings suggest that agglomerative forces linked to the unequal spatial distribution of skills, human capital, and opportunities shape the global geography of remote work. These forces pull remote work to places with institutions that foster specialisation and complex economic activities, i. e. metropolitan areas focused on information and communication technologies. Locations without access to these enabling institutions—in many cases, rural areas—fall behind. To make remote work an effective tool for economic and rural development, it would need to be complemented by local skill-building, infrastructure investment, and labour market programmes. [ABSTRACT FROM AUTHOR]

Information and communication technologies have long been predicted to spread economic opportunities to rural areas. However, the actual trend in the 21st century has been the opposite. Knowledge spillovers have fuelled urbanisation and pulled job-seekers into large cities, increasing the gap with rural areas. We argue that new assemblages of technologies and social practices, so-called 'online labour platforms', have recently started to counter this trend. By providing effective formal and informal mechanisms of enforcing cooperation, these platforms for project-based remote knowledge work enable users to hire and find work across distance. In analysing data from a leading online labour platform in more than 3000 urban and rural counties in the United States, we find that rural workers made disproportionate use of the online labour market. Rural counties also supplied, on average, higher-skilled online work than urban areas did. However, many of the most remote regions of the country did not participate in the online labour market at all. Our findings highlight the potentials and limitations of such platforms for regional economic development. CODE AND DATA: www.github.com/Braesemann/Rural [ABSTRACT FROM AUTHOR]