The Effect of Telecommuting on Suburbanization: Empirical Evidence
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In the standard urban model, employment is concentrated in the
Central Business District (CBD) and the locational choice of households
is modeled solely on access to the employment center. Now, technology
has facilitated the emergence of new office environments where work is
done at unconventional locations that were earlier in the CBD. While the
urban density function is not really new, in this study, we look at the effect
of telecommuting, made possible by technology, on suburbanization,
using data for U.S. metropolitan areas. We use population and household
gradients as measures of suburbanization. For telecommuting indicators,
we use data from Survey of Income Program and Participation
(SIPP). We find support for the natural evolution theory of suburbanization.
We find that telecommuting contributes to centralization of cities.
We conclude that technology could be a complement, not a substitute for
face-to-face interaction.