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Title: Population Density and the Local Economy pre-and post-Pandemic Breakout

Citation Type: Miscellaneous

Publication Year: 2021

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Abstract: How new jobs requiring high skill can be notably benecial for the overall employment of a local economy has been a long discussed topic in economic literature. Nevertheless, given the post-pandemic break-out trend for increasing remote work, especially in the case of high-skilled workers, the benecial eects may not be the same. This paper presents a two-sector spatial equilibrium search model that explains skill premium dierences together with the pre-and post-pandemic unemployment rate patterns for high and low population density locations. This is accomplished through an idea exchange environment that draws highly paid workers, who, as their wage increases, consume more of the local goods and services, together. Post-pandemic, this situation changes to a degree, explaining the pattern reversal in unemployment rate, namely that unemployment was greater during 2020 in high population density locations.

Url: https://ssrn.com/abstract=3921319

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Authors: Balouktsi, Despoina

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Data Collections: IPUMS CPS

Topics: Labor Force and Occupational Structure

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