Does Working from Home Work? Evidence from a Chinese Experiment
AbstractAbout 10% of US employees now regularly work from home (WFH), but there are concerns this can lead to “shirking from home.” We report the results of a WFH experiment at CTrip, a 16,000- employee, NASDAQ-listed Chinese travel agency. Call center employees who volunteered to WFH were randomly assigned to work from home or in the office for 9 months. Home working led to a 13% performance increase, of which about 9% was from working more minutes per shift (fewer breaks and sick-days) and 4% from more calls per minute (attributed to a quieter working environment). Home workers also reported improved work satisfaction and experienced less turnover, but their promotion rate conditional on performance fell. Due to the success of the experiment, CTrip rolled-out the option to WFH to the whole firm and allowed the experimental employees to re-select between the home or office. Interestingly, over half of them switched, which led to the gains from WFH almost doubling to 22%. This highlights the benefits of learning and selection effects when adopting modern management practices like WFH.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18871.
Date of creation: Mar 2013
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- Nicholas Bloom & James Liang & John Roberts & Zhichun Jenny Ying, 2013. "Does Working from Home Work? Evidence from a Chinese Experiment," CEP Discussion Papers dp1194, Centre for Economic Performance, LSE.
- M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration
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