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The Evolution of Work from Home

Author

Listed:
  • José María Barrero
  • Nicholas Bloom
  • Steven J. Davis

Abstract

Full days worked at home account for 28 percent of paid workdays among Americans 20–64 years old, as of mid-2023. That's about four times the 2019 rate and ten times the rate in the mid-1990s. We first explain why the big shift to work from home has endured rather than reverting to prepandemic levels. We then consider how work-from-home rates vary by worker age, sex, education, parental status, industry and local population density, and why it is higher in the United States than other countries. We also discuss some implications for pay, productivity, and the pace of innovation. Over the next five years, US business executives anticipate modest increases in work-from-home rates at their own companies. Other factors that portend an enduring shift to work from home include the ongoing adaptation of managerial practices and further advances in technologies, products, and tools that support remote work.

Suggested Citation

  • José María Barrero & Nicholas Bloom & Steven J. Davis, 2023. "The Evolution of Work from Home," Journal of Economic Perspectives, American Economic Association, vol. 37(4), pages 23-50, Fall.
    • Handle: RePEc:aea:jecper:v:37:y:2023:i:4:p:23-50
    DOI: 10.1257/jep.37.4.23
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    References listed on IDEAS

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    1. Carlino, Gerald & Kerr, William R., 2015. "Agglomeration and Innovation," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 349-404, Elsevier.
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    4. Daniela Scur & Raffaella Sadun & John Van Reenen & Renata Lemos & Nicholas Bloom, 2021. "The World Management Survey at 18: lessons and the way forward," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(2), pages 231-258.
    5. Thomas Le Barbanchon & Roland Rathelot & Alexandra Roulet, 2021. "Gender Differences in Job Search: Trading off Commute against Wage," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(1), pages 381-426.
    6. Nicholas Bloom & Ruobing Han & James Liang, 2022. "How Hybrid Working From Home Works Out," NBER Working Papers 30292, National Bureau of Economic Research, Inc.
    7. Hansen, Stephen & Lambert, Peter John & Bloom, Nicholas & Davis, Steven J. & Sadun, Raffaella & Taska, Bledi, 2023. "Remote Work across Jobs, Companies, and Space," IZA Discussion Papers 15980, Institute of Labor Economics (IZA).
    8. Forman, Chris & van Zeebroeck, Nicolas, 2019. "Digital technology adoption and knowledge flows within firms: Can the Internet overcome geographic and technological distance?," Research Policy, Elsevier, vol. 48(8), pages 1-1.
    9. David Autor & Arindrajit Dube & Annie McGrew, 2023. "The Unexpected Compression: Competition at Work in the Low Wage Labor Market," NBER Working Papers 31010, National Bureau of Economic Research, Inc.
    10. Nicholas Bloom & James Liang & John Roberts & Zhichun Jenny Ying, 2015. "Does Working from Home Work? Evidence from a Chinese Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(1), pages 165-218.
    11. Chris Forman & Nicolas van Zeebroeck, 2012. "From Wires to Partners: How the Internet Has Fostered R&D Collaborations Within Firms," Management Science, INFORMS, vol. 58(8), pages 1549-1568, August.
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    15. Yiling Lin & Carl Benedikt Frey & Lingfei Wu, 2022. "Remote Collaboration Fuses Fewer Breakthrough Ideas," Papers 2206.01878, arXiv.org, revised Oct 2023.
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    Cited by:

    1. Rosalie L. Tung, 2024. "Reflections on the 2023 JIBS Decade Award: Global cities and multinational enterprise location strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(1), pages 1-9, February.
    2. Esposito, Piero & Mendolia, Silvia & Scicchitano, Sergio & Tealdi, Cristina, 2024. "Working from Home and Job Satisfaction: The Role of Gender and Personality Traits," IZA Discussion Papers 16751, Institute of Labor Economics (IZA).
    3. Goux, Dominique & Maurin, Eric, 2024. "Sick of Working from Home?," IZA Discussion Papers 16848, Institute of Labor Economics (IZA).
    4. Bernardus Doornik & Deniz Igan & Enisse Kharroubi, 2023. "Labour markets: what explains the resilience?," BIS Quarterly Review, Bank for International Settlements, December.

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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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