Recent research: Tulsa Remote study shows strong economic returns

To grow their local populations and STEM workforce, communities across the country are experimenting with resident/worker attraction programs, as we have previously covered. But how effective are these programs? A recent study from the W.E. Upjohn Institute for Employment Research offers new insights by analyzing Tulsa Remote’s track record from its inception in 2018 to 2023.   

Tulsa Remote, launched in 2018 with funding from the George Kaiser Family Foundation, provides $10,000 to eligible remote workers who relocate to Tulsa and commit to stay for at least one year. According to their 2024 economic impact report, Tulsa Remote has attracted 3,475 remote workers, with 96% completing their one-year requirement and 70% continuing to live in Tulsa. The program spends roughly $15,000 per participant, including the incentive, administrative costs, and community benefits such as access to co-working spaces and other networking activities. 

The study focuses on what economists call the “but for” rate or the percentage of program participants who wouldn’t have moved to Tulsa without the incentive. Using administrative data from Tulsa Remote combined with commercial consumer location data from Infutor, the study compares the relocation behavior of approved versus rejected applicants. This approach controls for factors that might influence moving decisions independent of the program, such as applicants’ existing connections to Tulsa or prior interest in relocating there. The study estimates that 58-70% of Tulsa Remote participants represent genuine program-induced relocations, a significantly higher rate than typical business incentives, which often see “but for” rates below 25%.  

This high effectiveness translates into strong economic returns, with the study modeling a benefit-cost ratio of 4:1 for existing Tulsa residents. Modeled benefits include increased local spending, expanded tax revenue, rising property values, and indirect job creation. This rate of return compares favorably to traditional business relocation incentives, which often require much larger per-job investments to achieve similar program-induced relocations. 

The study also examines how these benefits are distributed across the community. While all income groups benefit, the findings suggest that lower- and middle-income households receive a slightly larger share of the benefits than their baseline income share. These gains include stronger job markets, higher wages, and increased local tax revenue.  

Overall, the findings suggest that remote worker attraction programs can be cost-effective economic development tools when well-designed. Beyond the financial incentive, the study notes that Tulsa Remote’s networking activities, entrepreneurship support, and retention strategies may be equally important. While the study also identifies potential supply-side benefits from attracting high-skilled workers, including new business formation and the possibility of attracting other employers, these longer-term effects are harder to quantify and require further study.