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Working from Home and the Consequences for Labour Turnover and Career Progression

Author

Listed:
  • Irma Mooi-Reci

    (School of Social and Political Sciences, The University of Melbourne)

  • Mark Wooden

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne)

Abstract

In the wake of the rapid growth in working from home (WFH) there has been renewed interest in the impacts of this form of employment. One area of contention is job mobility and career progression. WFH is often argued to improve job satisfaction and thus enhance employee retention. In contrast, the lesser visibility of remote workers and the possible stigma associated with WFH might make them less likely to be promoted and more likely to be dismissed. This study tests these conflicting hypotheses using longitudinal data involving up to almost 150,000 observations on employees collected over a 21-year period from the Household, Income and Labour Dynamics in Australia Survey. Fixed-effects regression models of five different outcomes are estimated. Strong results are mostly confined to those that work exclusively from home, more marked for subjective outcomes than objective outcomes and, in the case of objective outcomes, restricted to men. Among male employees, WFH all the time is associated with fewer quits but more dismissals. No such associations are found for females. Hybrid arrangements are also associated with a lower likelihood of promotion for men. These findings suggest that WFH may come at a career price, but only for men.

Suggested Citation

  • Irma Mooi-Reci & Mark Wooden, 2025. "Working from Home and the Consequences for Labour Turnover and Career Progression," Melbourne Institute Working Paper Series wp2025n01, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  • Handle: RePEc:iae:iaewps:wp2025n01
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    File URL: https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0011/5258072/wp2025n01.pdf
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    More about this item

    Keywords

    emotions; working from home; telecommuting; labour turnover; job quits; promotions; dismissals; Australia; HILDA Survey;
    All these keywords.

    JEL classification:

    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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