Job performance when workers work in locations they prefer

We estimate the relationship between working in a preferred job location and worker productivity. Using a difference-in-differences approach and data from the U.S. Marine Corps, we find that subsequent job performance improves among top performers assigned to their preferred job locations relative to average and bottom performers. In addition, the job performance of those whose preferred locations enhance firm-specific human capital also increases. Our findings have implications that extend beyond the military case and provide useful insights into post-pandemic workplaces offering more flexibility for location-based preferences.