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JUE Insight: Remote Work and the Decline in the Big-City Child Penalty

Ilaria anon iD, Keren Mertens Horn

DOI10.2139/ssrn.7593834
PublisherElsevier BV
Journal / Source—
Published2026
Metadata Deposited2026-10-10 (updated: 2026-10-10)
Subject—
Language—
ISSN—
Typeposted-content
Volume / Issue / Pages— / — / —
Citations0
References deposited30
Access / license metadataAccess not determined License 1 ↗A reuse license does not by itself establish whether the full text is freely readable.

Abstract

Urban density boosts productivity and economic opportunities, but it increases commuting, housing and childcare costs. In the US, these costs have historically led to  the Big-City Child Penalty (BCCP), namely, the lower labor force participation rate of mothers in larger cities than in smaller ones. We uncover a novel fact. Post-2020 the BCCP has suddenly declined in the United States. For college educated mothers this penalty has essentially disappeared, whereas for non-college educated mothers this penalty is weaker but persistent. We present evidence that the sudden and widespread diffusion of remote work can explain this finding.