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Title page 1
Contents 1
Abstract 3
1. Introduction 4
2. Data Sources and Measurement 6
A. Payroll data and home-employer distances 6
B. Survey of Working Arrangements and Attitudes (SWAA) 8
3. Home-Employer Distances Over Time 9
4. Tax rates, housing costs, and relocation 10
A. Tax Rates and the Pattern of Net Migration Across States 10
B. Housing Costs and Net Migration Across Local Areas 12
C. Individual-Level Gains from Relocation 13
5. Hires and Separations: Near versus Far Employees 14
A. A Nonparametric Examination of Firm-Level Employment Adjustments 15
B. A Nonparametric Examination of Individual-Level Separations 17
6. Concluding Remarks 17
References 20
Figures 23
Figure 1. Work from home intensity rises with distance to employer 23
Figure 2. Americans now live farther from their employers than in 2019 24
Figure 3. New hires since March 2020 account for the rise in distant employees 25
Figure 4. Employees in their 30s and 40s have the largest increase in distance to employer 26
Figure 5. High earners in Information, Professional Services, and Finance saw the greatest increases in distance to the workplace 27
Figure 6. Continuing employees moved to states with lower tax rates after the pandemic struck, with stronger migration responses for higher earners 28
Figure 7. Continuing employees moved to areas with cheaper housing after the pandemic struck, with stronger migration responses for higher earners 29
Figure 8. Separation and hiring rates are greater, and more responsive to employer growth, for distant employees 30
Appendix Figures 31
Figure A1. Sample reweighted to match Current Population Survey by gender, earnings, industry, and age 31
Figure A2. Distance to employer rose across the entire distribution after the pandemic struck 32
Figure A3. The share of distant employees rose for men and women after the pandemic 33
Figure A4. Percent of employees 50+ miles away rose in every major industry sector but much more so among new hires in Information,... 34
Figure A5. Employers in areas with high housing prices have a much greater share of distant employees 35
Figure A6. Distant employees became more common across the employer size distribution after the pandemic struck 36
Figure A7. Mean changes in tax rates, continuing employees who move between states 37
Figure A8. Mean percent changes in local home prices, continuing employees who moved between zip codes 38
Figure A9. Separation rates remain more responsive to firm-level growth for far employees when controlling for individual-level job tenure, age, and sex 39
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