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Home Sweet Home: How Much Do Employees Value Remote Work?

Author

Listed:
  • Zoë Cullen
  • Bobak Pakzad-Hurson
  • Ricardo Perez-Truglia

Abstract

We provide revealed-preference evidence on employee value for remote work and on the wage-setting strategies adopted by employers for in-person versus remote work. Using data on the job offers and selections of over 3,000 employees in the US tech sector, we estimate that, on average, individuals are willing to forgo 25 percent of their compensation for a job that is otherwise identical but offers hybrid or fully remote work instead of being in person. Puzzlingly, employers do not "compensate" for this positive amenity value: Companies offer similar wages for remote and in-person work at the same position and level.

Suggested Citation

  • Zoë Cullen & Bobak Pakzad-Hurson & Ricardo Perez-Truglia, 2025. "Home Sweet Home: How Much Do Employees Value Remote Work?," AEA Papers and Proceedings, American Economic Association, vol. 115, pages 276-281, May.
    • Handle: RePEc:aea:apandp:v:115:y:2025:p:276-81
    DOI: 10.1257/pandp.20251029
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    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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