71 US Cities Are Now Paying Tech Workers to Abandon Silicon Valley. And It's Working

'A growing number of cities and towns all over the U.S. are handing out cash grants and other perks aimed at drawing skilled employees of faraway companies to live there and work remotely,' reports the Wall Street Journal:

A handful of such programs have existed for years, but they have started gaining traction during the pandemic — and have really taken off in just the past year or so. Back in October there were at least 24 such programs in the U.S. Today there are 71, according to the Indianapolis-based company MakeMyMove, which is contracted by cities and towns to set up such programs.

Because these programs specifically target remote workers who have high wages, a disproportionate share of those who are taking advantage of them work in tech — and especially for big tech companies. Companies whose employees have participated in one remote worker incentive program in Tulsa, Oklahoma, include Adobe, Airbnb, Amazon, Apple, Dell, Facebook parent Meta Platforms, Google, IBM, Microsoft, Lyft, Netflix, Oracle and Siemens, according to a spokeswoman for the organization.

Local governments are offering people willing to move up to $12,000 in cash, along with subsidized gym memberships, free babysitting and office space....

A skeptic might ask why local economic development programs are spending funds to subsidize the lives of people who work for some of the most valuable companies in the world. On the other hand, because these remote workers aren't coming to town seeking local jobs, an argument can be made that they constitute a novel kind of stimulus program for parts of the country that have been left out of the tech boom — courtesy of big tech companies... Every remote worker these places successfully attract and retain is like gaining a fraction of a new factory or corporate office, with much less expenditure and risk, argues Mark Muro, who studies cities and labor at the Brookings Institution.
The reporter interviewed an Amazon engineer who moved to Greensburg, Indiana (population: 12,193), and Meta worker David Gora, who moved to Tulsa, Oklahoma and praises its relocation program's sense of mission, possibility, and community. 'Even with the pay cuts that Meta has imposed on workers who relocate to areas with a lower cost of living, Mr. Gora is saving a lot more money and has a much higher quality of life than before, he adds.'

Tulsa's program is unique in that it's funded by a philanthropic organization rather than a local economic-development budget, the article points out. But it adds that 'a study conducted by the Economic Innovation Group and commissioned by Tulsa Remote concluded that for every two people the program brings to the city, one new job is created.'

By contrast, when an office moves to a town, every new high-wage tech job creates an estimated five more jobs in sectors including healthcare, education and service, according to research by economist Enrico Moretti. That's because those deals involve not only people but the money that goes into building and maintaining facilities, paying commercial property taxes and more.

Still, for towns that don't have the budget to attract a whole office or factory, the modest impact of bringing in a handful of remote tech workers can be balanced by the much smaller investment required to attract them.

Read more of this story at Slashdot.