Edward Conard

Top Ten New York Times Bestselling Author

  • “Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “Unintended Consequences represents the most cogent and persuasive analysis of the Financial Crisis to date.” - Andrei Shleifer, 1999 John Bates Clark Medal Winner
  • “…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
  • “…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
  • “A full-throated defense of economic dynamism.” - The Wall Street Journal
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “Unintended Consequences is full of substance, it is one of the must-read books of the year, and once I finish it I will be giving it a second read through right away.” - Tyler Cowen, Professor, George Mason University
  • “…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
  • “…a very valuable contribution.” - Larry Summers, former Secretary of the Treasury and director of the National Economic Council, president emeritus, Harvard University
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
Upside of Inequality Oxford Unintended Consequences

AI Summary. Low-skilled consumer-services workers in the densest U.S. urban areas accounted for nearly 60% of hours lost in the economy while making up 41% of the national workforce, according to National Bureau of Economic Research work. As high-skill service workers gain flexibility in where they live, demand for local consumer services in dense cities is threatened.

Michael Sasso Bloomberg
Date Posted:
Is Database:
Database

Low-skilled consumer services workers in cities, 41% of labor force, account for 60% of hours lost in US economy.

Does remote work disproportionately hurt low-skilled service workers in dense cities?

Core argument: Low-skilled consumer-services workers in the densest U.S. urban areas accounted for nearly 60% of hours lost in the U.S. economy in January while representing 41% of the national workforce.

In January, low-skilled consumer-services workers in the densest urban areas accounted for nearly 60% of hours lost in the U.S. economy, despite representing 41% of the national workforce. This disproportionate impact highlights the economic fallout from the pandemic, as remote work trends and suburban migration by white-collar employees have left these workers in deserted neighborhoods. The study by the National Bureau of Economic Research reveals that high-skill service workers gain flexibility in residential choices, threatening the economic livelihood of low-skill workers who rely on local consumer services demand. In dense urban areas, about 45% of jobs can be performed remotely, representing 65% of payroll, exacerbating the challenges faced by low-skilled workers.

Takeaways by Macro Roundup® AI

  1. Low-skilled consumer-services workers in the densest U.S. urban areas accounted for nearly 60% of hours lost in the U.S. economy in January while representing 41% of the national workforce.
  2. In dense urban areas, about 45% of jobs can be performed remotely, representing 65% of payroll, according to the National Bureau of Economic Research study.
  3. The National Bureau of Economic Research study finds that high-skill service workers gain flexibility in where they live, threatening the livelihood of low-skill workers who depend on local consumer-services demand.

“…In January, low-skilled consumer-services workers in the densest urban areas of the country accounted for almost 60% of hours lost in the U.S. economy, compared with the previous year, according to “The Geography of Remote Work,” a paper published by the National Bureau of Economic Research. And yet they accounted for 41% of the workforce, nationally. In other words, low-skilled workers in densely populated areas have borne the largest share of the pandemic’s economic fallout, including compared with their rural counterparts, according to the research, which used Census Bureau data….”

Michael Sasso, "Remote Work Is Crushing Low-Skilled Left Behind in U.S Cities," Bloomberg, September 1, 2021, https://www.bloomberg.com/news/articles/2021-09-01/remote-work-is-crushing-low-skilled-left-behind-in-u-s-cities

Remote Work Is Crushing Low-Skilled Left Behind in U.S Cities

The pandemic trend of white-collar employees working remotely or fleeing for the suburbs has disproportionately hurt low-skilled workers who stayed behind in deserted neighborhoods.

Now A study has quantified the impact for millions of consumer-services workers such as hairdressers and waiters who relied on office employees to make a living in big cities before the pandemic.

In January, low-skilled consumer-services workers in the densest urban areas of the country accounted for almost 60% of hours lost in the U.S. economy, compared with the previous year, according to “The Geography of Remote Work,” a paper published by the National Bureau of Economic Research. And yet they accounted for 41% of the workforce, nationally.

In other words, low-skilled workers in densely populated areas have borne the largest share of the pandemic’s economic fallout, including compared with their rural counterparts, according to the research, which used Census Bureau data.

“High-skill service workers gain flexibility in their residential choices,” said the paper’s authors, Lukas Althoff of Princeton University, Fabian Eckert of the University of California San Diego, cof Georgetown University and Conor Walsh of Columbia University. “Such changes in residential choices of high-income earners endanger the economic livelihood of low-skill service workers in big cities who depend on local consumer services demand.”

The authors describe the relationship between a city’s population density and the potential for remote work as “striking.” In America’s densest areas, about 45% of local jobs could be done away from the office, representing about 65% of payroll, they found.

Showing 218 database articles primarily about Business Cycle