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Work-From-Home Preferences in Labour Market Matching: Evidence from an Agent-Based Model

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Abstract

This paper explores how personal preferences affect labour market outcomes using an agent-based simulation model of the IT sector. Our findings indicate that while remote work preferences have minimal impact on average industry wage levels, they significantly influence recruitment dynamics. Firms that adapt their hiring strategies to align with worker preferences do not experience a drop in productivity or salary competitiveness but gain an advantage in attracting talent. These results suggest that in high-productivity industries, where wages are largely driven by output, non-monetary preferences like remote work serve as a key differentiator in recruitment. The study highlights the strategic value of flexibility in hiring, with implications for future trends such as reduced workweeks in increasingly automated environments.

Suggested Citation

  • Mario Javier Rodriguez Ureta & Carl Barton, 2026. "Work-From-Home Preferences in Labour Market Matching: Evidence from an Agent-Based Model," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 29(4), pages 1-2.
    • Handle: RePEc:jas:jasssj:2025-143-2
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