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October 15, 2025EconomicaOpen Access

Remote working and the new geography of local service spending

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A 5% decline in local personal services spending is observed in neighbourhoods with 20% less commuting.
Analysis of nearly 35,000 adults highlights a geographic 'donut' effect, showing uneven demand shifts.
Neighbourhoods exhibit varied changes in LPS demand based on sociodemographic factors, suggesting increased inequality.
The study identifies that the least affluent groups benefit the least from shifts associated with remote work.

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Analysis reveals a 5% decline in local personal services spending in areas with reduced commuting, suggesting a shift in demand dynamics.

Fraja et al. (2025) studied this question.

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