The global polarisation of remote work

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. Specific...

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Main Authors: Fabian Braesemann, Fabian Stephany, Ole Teutloff, Otto Kässi, Mark Graham, Vili Lehdonvirta
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2022-01-01
Series:PLoS ONE
Online Access:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9584402/?tool=EBI
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author Fabian Braesemann
Fabian Stephany
Ole Teutloff
Otto Kässi
Mark Graham
Vili Lehdonvirta
author_facet Fabian Braesemann
Fabian Stephany
Ole Teutloff
Otto Kässi
Mark Graham
Vili Lehdonvirta
author_sort Fabian Braesemann
collection DOAJ
description 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.
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spelling doaj.art-8a09ca8303cd488aa486318f8b9f17ce2022-12-22T04:07:20ZengPublic Library of Science (PLoS)PLoS ONE1932-62032022-01-011710The global polarisation of remote workFabian BraesemannFabian StephanyOle TeutloffOtto KässiMark GrahamVili LehdonvirtaThe 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.https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9584402/?tool=EBI
spellingShingle Fabian Braesemann
Fabian Stephany
Ole Teutloff
Otto Kässi
Mark Graham
Vili Lehdonvirta
The global polarisation of remote work
PLoS ONE
title The global polarisation of remote work
title_full The global polarisation of remote work
title_fullStr The global polarisation of remote work
title_full_unstemmed The global polarisation of remote work
title_short The global polarisation of remote work
title_sort global polarisation of remote work
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9584402/?tool=EBI
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