How Tulsa's $10,000 Remote Worker Incentive Boosted Its Economy 4x

When Kagan Conaway stumbled upon an Instagram ad offering $10,000 to remote workers willing to relocate to Tulsa, Oklahoma, skepticism was her first reaction. Fast forward to July 2024, and Conaway, along with over 3,400 others, has become part of Tulsa's ambitious Tulsa Remote program, designed to diversify the city's oil and gas-dominated workforce.

The Economic Impact

A groundbreaking study reveals that for every dollar Tulsa invested in attracting remote workers, the city saw a $4.31 return in local economic benefits. This 4-to-1 ratio outperforms traditional business incentive programs, which typically yield a 2-to-1 return. The influx of high-skilled workers has not only boosted local businesses but also expanded the tax base, funding public services without straining government budgets.

Why It Works

• Social Infrastructure: Tulsa Remote goes beyond financial incentives, offering networking events, coworking spaces, and community support to help newcomers acclimate.
• High Retention Rates: An impressive 96% of participants complete the program's one-year requirement, with 70% choosing to stay long-term.
• Multiplier Effects: Remote workers' spending at local establishments generates additional jobs and stimulates demand across the economy.

The Bigger Picture

Tulsa's success story highlights a shift in economic development strategies, focusing on attracting individuals rather than corporations. With 26% of the 2024 cohort in tech, the program addresses Tulsa's chicken-and-egg problem of needing high-tech workers to attract high-tech jobs.

However, the model isn't one-size-fits-all. Cities with tight housing markets may struggle to accommodate new residents without exacerbating affordability issues. Tulsa's elastic housing market and philanthropic funding from the George Kaiser Family Foundation have been key to its success.

"Remote worker attraction is a relatively cheap way of bringing jobs to your city," says economist Timothy Bartik, advocating for a reallocation of economic development funds towards programs like Tulsa Remote.