Working from home and digital divides: resilience during the pandemic


Hannah Budnitz & Emmanouil Tranos

University of Bristol, Alan Turing Institute
@EmmanouilTranos etranos.info

Cite:


Budnitz, H., and E. Tranos (2021) Working from home and digital divides: resilience during the pandemic. Annals of the AAG. In press. link

etranos.info/post/rinr2021

Contents

  • Introduction
  • Experienced broadband speed data
  • Analysis
  • Conclusions

Introduction

WFH / Telecommuting

  • From a niche means of accessing work to a widespread way of life
  • From \(5\)% to \(47\)% in the UK (ONS 2020a, 2020b)
  • \(37\)% WFM in European April \(2020\)
  • \(60\)% in Finland (Eurofound 2020)
  • Almost \(50\)% in the US, \(37\)% could be permanently moved online (Brynjolfsson et al. 2020; Dingel and Neiman 2020)

WFH / Telecommuting

  • WFH = economic resilience during Covid-19

  • Capability to WFH:

    • occupations
    • quality digital infrastructure
  • Spatial clustering and dependence

Digital divides

  • 1st level: availability and quality of internet connectivity

  • 2nd level: skills to effectively utilise digital technologies

  • 3rd level: returns of internet usage

  • Cross-level interactions

Our approach

  • Intersection of digital and material divides

  • Economic resilience of places as digital technologies became an essential tool of productivity during the pandemic

    internet services + occupations \(\Rightarrow\) WFM \(\Rightarrow\) economic resilience

Our approach

  • UK Local Authorities Districts (LAD) as a case study
  • Quality of internet service: experienced internet speeds during the spring \(2020\) lockdown
  • Time-series clustering to create clusters of local authorities with similar temporal signatures of internet speeds
    • \(\Rightarrow\) 1st level of digital divide
  • Regress cluster membership against their socioeconomic and geographic characteristics
    • \(\Rightarrow\) how the 1st level of digital divide intersects with the 2nd and 3rd

Data

Experienced Broadband Speeds

  • Experienced vs. advertised internet speeds
  • \(\Uparrow\) internet demand  usage \(\Downarrow\) experienced internet speed
  • www.broadbandspeedchecker.co.uk/
  • Riddlesden and Singleton (2014) & Nardotto, Valletti, and Verboven (2015)
  • Stream data, anonymised individual speed tests
  • Upload speeds and the frequency of speed tests March to May \(2020\)

Experienced Broadband Speeds

  • An overall trend of increased testing from March to April and then a slight reduction from April to May in 2020, compared to less testing as Spring progresses in 2019

  • \(2019\) evening peak of testing, leisure activities, download speeds

  • \(2020\) new morning peak \(\Rightarrow\) flatter hourly temporal profile

Analysis

Aggregation

  • Relatively scarce data to analyse as stream

  • Composite week time series

  • Mon-Friday, hourly \(6:00\)\(24:00\), excl. bank holidays

  • \(18\) hourly data points \(x\) \(5\) weekdays (\(90\)) for each local authority (\(382\))

  • Focus on upload speeds

Time series clustering

  • Aim: create clusters of local authorities with similar temporal signatures of internet speed

  • Shape-based approach

  • Match two separate time-series objects based on the similarity of their shapes

  • Distances between the shapes

  • Simplicity:

    • k-means
    • medoids, time-series objects with a minimal distance to all other cluster objects
Upload speed cluster characteristics
Cluster N. of LADs LAD population mean speed SD speed mean AM speed mean PM speed
1 9 903200 9564 6314 8798 10457
2 2 162000 12085 6537 11882 10866
3 12 1785800 11047 6079 10029 11634
4 1 91100 9689 6122 7816 9689
5 3 280000 10802 6116 11010 10084
6 229 40552800 8761 5847 8555 8955
7 5 682500 10326 6102 10045 11149
8 6 510000 9769 6352 8989 10836
9 115 21467800 10328 5915 10283 10333
Note: All speed measures are upload speeds

Time series clustering

  • Cluster 1: Medium sized mostly rural cluster; slow mean upload speeds; high workday temporal variation.

  • Cluster 2: Small rural cluster; highest mean upload speeds; slowdown more in evening.

  • Cluster 3: Medium sized mixed cluster; fast mean upload speeds; medium temporal variation.

  • Cluster 4: Rural reference LAD; medium mean upload speeds; high temporal variation.

  • Cluster 5: Small suburban cluster; fast mean upload speeds; slowdown more in evening.

  • Cluster 6: Large mixed cluster; slowest aggregate mean upload speeds; low workday temporal variation.

  • Cluster 7: Small suburban cluster; fast mean upload speeds; medium temporal variation.

  • Cluster 8: Small mainly suburban cluster; slow mean upload speeds; high workday temporal variation.

  • Cluster 9: Large, more urban cluster; fast mean upload speeds; lowest workday temporal variation.

Post-clustering regression analysis

  • Explain the characteristics of clusters

  • How the 1st level of the digital divide intersects with the 2nd and 3rd?

  • Multinomial logit regression: cluster membership against:

    • population
    • pop. and job density
    • distance to nearest met. area and to London, South of the UK dummy
    • % of managerial, tech, skilled trade, professional, administrative, leisure, machine operation jobs
    • earnings, n. business est. per hab.
    • % furloughed pop., 2020
    • AM broadband tests per hab.
    • % of Virgin Media connections

Cluster 6

  • Workers are more likely to hold managerial, tech and professional jobs
  • Least likely to be furloughed
  • Slow and less reliable speeds
  • High job density

Clusters 6 and 9

  • Although speeds were slow and not as reliable during the morning peak as in cluster 9, the skills that enabled telecommuting also enabled greater returns from doing so (\(\Downarrow\) furloughed)

  • LADs in cluster 9 were able to benefit both from reliable internet connections and populations able to work from home to capitalise on their digital infrastructure

  • But lower returns in the pandemic \(\Rightarrow\) greater numbers furloughed

Being on the right side of digital divides

  • Clusters 3, 7 and 9 are on the right side of the 1st layer of digital divide

  • Internet resilience supports, but also frustrates urban economies in different geographies:

    • \(\Uparrow\) morning peak tests per capita run in cluster 6
  • Being on the right side of the 2nd level digital divide had a greater impact on economic resilience (3rd level digital divide), than having quality internet connectivity

    • \(\Rightarrow\) cluster 1 and 6

Conclusions

  • Seven of our nine clusters had slower upload speeds in the morning than in the evening

  • Evidence of widespread telecommuting and other daytime internet use (e.g. education) which changed the temporal profile of internet activity throughout the UK

  • Upload speeds have not previously been seen as integral to universal service, considering there has never before been such extreme demand for telecommuting and operations such as video calls

  • Τelecommuting from the viewpoint of the complex web of digital divides

  • Quality of internet infrastructure

  • Places may depend upon good internet reliability and connectivity to achieve economic resilience in a period like the current pandemic

  • Νot every place hosts individuals with the necessary skills and in occupations to effectively use the internet to telecommute

References

Brynjolfsson, Erik, John J Horton, Adam Ozimek, Daniel Rock, Garima Sharma, and Hong-Yi TuYe. 2020. “COVID-19 and Remote Work: An Early Look at US Data.” National Bureau of Economic Research.
Dingel, Jonathan I, and Brent Neiman. 2020. “How Many Jobs Can Be Done at Home?” Working Paper 26948. Working Paper Series. National Bureau of Economic Research. https://doi.org/10.3386/w26948.
Eurofound. 2020. “Living, Working and COVID-19.” COVID-19 Series. https://www.eurofound.europa.eu/publications/report/2020/living-working-and-covid-19.
Nardotto, Mattia, Tommaso Valletti, and Frank Verboven. 2015. “Unbundling the Incumbent: Evidence from UK Broadband.” Journal of the European Economic Association 13 (2): 330–62.
ONS. 2020a. “Coronavirus and Homeworking in the UK: April 2020.” 2020. https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/coronavirusandhomeworkingintheuk/april2020.
———. 2020b. “Coronavirus and Homeworking in the UK Labour Market: 2019.” 2020. https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/coronavirusandhomeworkingintheuklabourmarket/2019.
Riddlesden, Dean, and Alex D Singleton. 2014. “Broadband Speed Equity: A New Digital Divide?” Applied Geography 52: 25–33.