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The Power of Proximity: How Working beside Colleagues Affects Training and Productivity

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Abstract

Firms remain divided about the value of the office for “office” workers. Some firms think that their employees are more productive when working from home. Others believe that the office is a key place for investing in workers’ skills. In this post, which is based on a recent working paper, we examine whether both sides could be right: Could working in the office facilitate investments in workers’ skills for tomorrow that diminish productivity today?

Suggested Citation

  • Natalia Emanuel & Emma Harrington & Amanda Pallais, 2024. "The Power of Proximity: How Working beside Colleagues Affects Training and Productivity," Liberty Street Economics 20240118, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:97632
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    File URL: https://libertystreeteconomics.newyorkfed.org/2024/01/the-power-of-proximity-how-working-beside-colleagues-affects-training-and-productivity/
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    More about this item

    Keywords

    work from home; remote work; on-the-job training; peer effects; mentoring; gender;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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