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Telework, Wages, and Time Use in the United States

Author

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  • Sabrina Wulff Pabilonia

    (U.S. Bureau of Labor Statistics)

  • Victoria Vernon

    (SUNY Empire State College)

Abstract

Using data on full-time wage and salary workers from the 2017–2018 American Time Use Survey Leave and Job Flexibilities Module, we estimate hourly wage differentials for teleworkers and compare how workers allocate their time over the day when they work from home rather than the office. We find that some teleworkers earn a wage premium, but it varies by gender, parental status, and teleworking intensity. Fathers who telework earn more than fathers in office-based jobs, regardless of teleworking intensity. Women without children who telework occasionally earn more than their office counterparts. In industries and occupations where telework is more prevalent, mothers who work from home most days of the week pay a wage penalty compared to mothers in office-based jobs. Using time diaries, we find differences in work patterns and hours across worker groups that could drive these teleworker wage differentials. Most teleworkers work less on home days; however, those who earn wage premiums are working longer hours on weekdays, regardless of their work location. When teleworking, mothers experience more interruptions in their workdays than other workers, which could have negative effects on their productivity. We also find that teleworkers spend less time on commuting and grooming activities but more time on leisure activities and with family on work-at-home days than on office days, and female teleworkers spend more time sleeping and on household production activities.

Suggested Citation

  • Sabrina Wulff Pabilonia & Victoria Vernon, 2022. "Telework, Wages, and Time Use in the United States," Review of Economics of the Household, Springer, vol. 20(3), pages 687-734, September.
  • Handle: RePEc:kap:reveho:v:20:y:2022:i:3:d:10.1007_s11150-022-09601-1
    DOI: 10.1007/s11150-022-09601-1
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    Cited by:

    1. Barrero, Jose Maria & Bloom, Nick & Davis, Steven J., 2020. "Why Working From Home Will Stick," SocArXiv wfdbe, Center for Open Science.
    2. Charlene Marie Kalenkoski & Sabrina Wulff Pabilonia, 2022. "Impacts of COVID-19 on the self-employed," Small Business Economics, Springer, vol. 58(2), pages 741-768, February.
    3. Marta Christina SUCIU & Adrian PETRE, 2022. "Telework in Romania. Current State and Sustainable Socio-Economic Effects of Its Development," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 10(1), pages 53-68, March.
    4. Maria Barrero, Jose & Bloom, Nicholas & Davis, Steven J., 2021. "Internet access and its implications for productivity, inequality and resilience," LSE Research Online Documents on Economics 113869, London School of Economics and Political Science, LSE Library.
    5. Brandon J. Restrepo & Eliana Zeballos, 2022. "Work from home and daily time allocations: evidence from the coronavirus pandemic," Review of Economics of the Household, Springer, vol. 20(3), pages 735-758, September.
    6. Boca Daniela del & Rossi Maria Cristina & Oggero Noemi & Profeta Paola, 2022. "The impact of COVID-19 on the gender division of housework and childcare: Evidence from two waves of the pandemic in Italy," IZA Journal of Labor Economics, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 11(1), pages 1-20, January.
    7. Sabrina Wulff Pabilonia & Victoria Vernon, 2022. "Telework, Wages, and Time Use in the United States," Review of Economics of the Household, Springer, vol. 20(3), pages 687-734, September.
    8. Hirte, Georg & Laes, Renée, 2022. "Working from self-driving cars," CEPIE Working Papers 01/22, Technische Universität Dresden, Center of Public and International Economics (CEPIE).

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    More about this item

    Keywords

    Remote work; Working from home; Telework; Wages; Time use; Commuting; Productivity;
    All these keywords.

    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
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

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