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The global polarisation of remote work.

Fabian Braesemann^1,2,3, Fabian Stephany^1,2,3, Ole Teutloff^3,4

¹Oxford Internet Institute, University of Oxford, Oxford, United Kingdom.

|October 20, 2022

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Remote work, spurred by the pandemic, divides global labor markets. It concentrates in cities and among skilled workers, leaving many countries and rural areas behind.

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Area of Science:

Economics
Labor Studies
Geography

Background:

The COVID-19 pandemic accelerated the adoption of digitally enabled remote work.
Remote work presents potential benefits for labor market connectivity but also risks of spatial polarization.
Limited understanding exists regarding the geographical distribution and impacts of remote work.

Purpose of the Study:

To investigate the geographical patterns of remote work, specifically its global reach and concentration.
To analyze how remote work affects different countries, urban versus rural areas, and skill-based competition.
To understand the role of skill requirements in remote employment and wage determination.

Main Methods:

Utilized data from an online labor platform representing a fully remote labor market.
Analyzed the spatial distribution of remote jobs across countries and regions.
Examined the relationship between worker skills, job opportunities, and wage outcomes.

Main Results:

Remote platform work exhibits polarization across three dimensions: global, spatial, and skill-based.
Geographically, North America, Europe, and South Asia dominate, with limited participation from the Global South.
Remote jobs concentrate in large cities, bypassing rural areas, and favor workers with in-demand skills, leading to wage disparities.

Conclusions:

Agglomerative forces, driven by unequal skill distribution and opportunities, shape remote work geographies.
Remote work gravitates towards metropolitan areas with strong information and communication technology (ICT) sectors.
To foster inclusive economic and rural development through remote work, complementary strategies like skill-building and infrastructure investment are crucial.