Working From Home and Wage Dynamics

Abstract

We study how working from home (WFH) relates to wages and wage growth. We propose a labor supply framework with WFH and on-site work modes, and an empirical strategy linking work arrangements to wages and wage growth while addressing selection into WFH. We find no statistically significant relationship between WFH and contemporaneous wages. Men with higher WFH intensity experience slower wage growth; estimates for women are not distinguishable from zero. These patterns are unlikely to be explained by occupational composition or selection. The findings are consistent with WFH affecting human capital accumulation inputs, while having limited implications for contemporaneous productivity.