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