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Trusted from Home: Managerial Beliefs and Workers' Spatial Autonomy

Author

Listed:
  • Gill, Adam

    (Uppsala University)

  • Nordström Skans, Oskar

    (Uppsala University)

Abstract

A key difference between on-site and remote work is the reduction in direct managerial oversight when tasks are performed outside traditional office settings. We use survey data on manager trust—measured by the question "...do you think that most people would try to take advantage of you if they got the chance?"—and relate the answers to employees' work-from-home intensities. Our results show that the remote work intensity is higher in countries, regions, and regions-by-industries where managers have higher levels of trust. This association remains robust after controlling for other dimensions of societal trust and confounding factors such as occupation types, broadband access, and digital skills. Manager trust was strongly related to work-from-home levels before the pandemic, and the association became even stronger for occupations in the middle of the remote work distribution following the pandemic surge in work from home. Overall, our findings suggest that manager trust is a crucial prerequisite for high sustained levels of remote work.

Suggested Citation

  • Gill, Adam & Nordström Skans, Oskar, 2024. "Trusted from Home: Managerial Beliefs and Workers' Spatial Autonomy," IZA Discussion Papers 17468, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp17468
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    References listed on IDEAS

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    1. Dingel, Jonathan I. & Neiman, Brent, 2020. "How many jobs can be done at home?," Journal of Public Economics, Elsevier, vol. 189(C).
    2. Lawrence F. Katz, 1986. "Efficiency Wage Theories: A Partial Evaluation," NBER Chapters, in: NBER Macroeconomics Annual 1986, Volume 1, pages 235-290, National Bureau of Economic Research, Inc.
    3. José María Barrero & Nicholas Bloom & Steven J. Davis, 2023. "The Evolution of Work from Home," Journal of Economic Perspectives, American Economic Association, vol. 37(4), pages 23-50, Fall.
    4. Nicholas Bloom & Ruobing Han & James Liang, 2024. "Hybrid working from home improves retention without damaging performance," Nature, Nature, vol. 630(8018), pages 920-925, June.
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    Cited by:

    1. Jan Bietenbeck & Natalie Irmert & Therese Nilsson, 2026. "Individualism and working from home," Economic Inquiry, Western Economic Association International, vol. 64(2), pages 491-507, April.

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    Keywords

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    JEL classification:

    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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