How Remote Work Industry Structures Impact Regional Income Disparities Between Teleworkers and Overall Workers – A Comparative Insight between 2019 and 2021 in the U.S.
With the rapid development of information and communication technologies(ICT), particularly during the COVID-19 pandemic and the subsequent stay-at-home orders, work from home(WFH) has emerged as a key strategy in responding to the crisis, experiencing unprecedented growth and continuing to demonstrate its significance in the post-pandemic era. Studies suggest that remote workers may enjoy a higher income premium compared to the overall labor market. Therefore, this "new normal" work model, in the absence of effective regulation, could exacerbate existing regional income inequalities in certain areas. This study utilizes various models to analyze how the correlation between the proportion of remote work in different industries and regional income disparities has changed before and after the pandemic. The analysis is based on the top 5 Combined Statistical Areas (CSAs) in the United States, with the tract level serving as the unit of analysis.The results show that, compared to 2019, the positive correlation between the proportion of remote work and income disparities has become more significant after the pandemic, with notable heterogeneity across different industries, demographic characteristics, and geographical locations. Particularly in the information, finance, and professional, technical, and management industries, an increase in the proportion of remote work has further intensified income disparities. The positive correlation between the proportion of remote workers who are white, male, aged 25 to 54 and regional income disparities has also increased post-pandemic. Additionally, compared to urban centers, more distant areas have shown a more significant correlation between relevant factors and income disparities after the pandemic.