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Working Remotely? Selection, Treatment, and the Market for Remote Work

Author

Listed:
  • Natalia Emanuel
  • Emma Harrington

Abstract

How does remote work affect productivity and how productive are workers who choose remote jobs? We decompose these effects in a Fortune 500 firm. Before COVID-19, remote workers answered 12 percent fewer calls per hour than on-site workers. After offices closed, the productivity gap narrowed by 4 percent, and formerly on-site workers' call quality and promotion rates declined. Even with everyone remote, an 8 percent productivity gap persisted, indicating negative selection into remote jobs. A cost-benefit analysis indicates savings in reduced turnover and office rents could outweigh remote work's negative productivity impact but not the costs of attracting less productive workers.

Suggested Citation

  • Natalia Emanuel & Emma Harrington, 2024. "Working Remotely? Selection, Treatment, and the Market for Remote Work," American Economic Journal: Applied Economics, American Economic Association, vol. 16(4), pages 528-559, October.
    • Handle: RePEc:aea:aejapp:v:16:y:2024:i:4:p:528-59
    DOI: 10.1257/app.20230376
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    Citations

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    Cited by:

    1. Fenizia, Alessandra & Kirchmaier, Thomas, 2024. "Not incentivized yet efficient: working from home in the public sector," LSE Research Online Documents on Economics 126773, London School of Economics and Political Science, LSE Library.
    2. José María Barrero & Nicholas Bloom & Kathryn Bonney & Cory Breaux & Catherine Buffington & Steven J. Davis & Lucia Foster & Brian McKenzie & Keith Savage & Cristina Tello-Trillo, 2025. "Tapping Business and Household Surveys to Sharpen Our View of Work from Home," Working Papers 25-36, Center for Economic Studies, U.S. Census Bureau.
    3. Achard, Pascal & Belot, Michèle & Chevalier, Arnaud, 2025. "When Parents Work from Home," IZA Discussion Papers 17957, Institute of Labor Economics (IZA).
    4. Sabrina Wulff Pabilonia & Victoria Vernon, 2025. "Remote work, wages, and hours worked in the United States," Journal of Population Economics, Springer;European Society for Population Economics, vol. 38(1), pages 1-49, March.
    5. Brueckner, Jan K., 2025. "Work-from-home and cities: An elementary spatial model," Regional Science and Urban Economics, Elsevier, vol. 111(C).
    6. Thomas Breda & Paul Dutronc-Postel & Vladimir Pecheu, 2024. "Does Feasibility Explain the Unequal Development of Working From Home?," PSE Working Papers halshs-04777568, HAL.
    7. Ketter, Laura & Morris, Todd & Yu, Lizi, 2025. "A New Equilibrium: COVID-19 Lockdowns and WFH Persistence," IZA Discussion Papers 17975, Institute of Labor Economics (IZA).
    8. Gibbs, Michael & Mengel, Friederike & Siemroth, Christoph, 2025. "Innovator Networks Within the Firm and the Quality of Innovation," IZA Discussion Papers 17966, Institute of Labor Economics (IZA).
    9. Thomas Breda & Paul Dutronc-Postel & Vladimir Pecheu, 2024. "Does Feasibility Explain the Unequal Development of Working From Home?," Institut des Politiques Publiques halshs-04777568, HAL.
    10. Nida Çakır Melek & Alex Gallin, 2024. "The Future of U.S. Productivity: Cautious Optimism amid Uncertainty," Economic Review, Federal Reserve Bank of Kansas City, pages 1-20, December.
    11. Cevat Giray Aksoy & Nicholas Bloom & Steven J. Davis & Victoria Marino & Cem Ozguzel, 2025. "Remote Work, Employee Mix, and Performance," NBER Working Papers 33851, National Bureau of Economic Research, Inc.
    12. Maria Saez Marti, 2025. "Take a Break: A Model of Fatigue, Recovery, and the Economics of Remote Work," Cowles Foundation Discussion Papers 2268R1, Cowles Foundation for Research in Economics, Yale University.
    13. Hennecke, Juliane & Knabe, Andreas, 2025. "Homebound Happiness? Teleworkability of Jobs and Emotional Well-Being During Labor and Non-labor Activities," IZA Discussion Papers 17634, Institute of Labor Economics (IZA).
    14. Goulas, Sofoklis, 2025. "The Value of Remote Work: A Correspondence Experiment on Tutors," IZA Discussion Papers 17592, Institute of Labor Economics (IZA).
    15. Feuillade, Mylène & Goux, Dominique & Maurin, Eric, 2025. "Rise in Home Working and Spousal Labor Supply," IZA Discussion Papers 17997, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • 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
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • L84 - Industrial Organization - - Industry Studies: Services - - - Personal, Professional, and Business Services
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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