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Does remote work improve or impair firm labour productivity? Longitudinal evidence from

Author

Listed:
  • Natália P. Monteiro

    (NIPE and Department of Economics, University of Minho)

  • Odd Rune Straume

    (NIPE and Department of Economics, University of Minho)

  • Marieta Valente

    (NIPE and Department of Economics, University of Minho)

Abstract

Whether or not the use of remote work increases firm labour productivity is theoretically ambiguous. We use a rich and representative sample of Portuguese firms, and within-firm variation in the policy on remote work, over the period 2011-2016, to empirically assess the causal productivity effect of remote work. Our findings from estimations of models with firm fixed effects suggest that the average productivity effect of allowing remote work is significantly negative, though relatively small in magnitude. However, we also find a substantial degree of heterogeneity across different categories of firms. In particular, we find evidence of opposite effects of remote work for firms that do not undertake R&D activities and for firms that do, where remote work has a significantly negative (positive) effect on labour productivity for the former (latter) type of firms. Negative effects of remote work are also more likely for small firms that do not export and employ a workforce with a below-average skill level.

Suggested Citation

  • Natália P. Monteiro & Odd Rune Straume & Marieta Valente, 2019. "Does remote work improve or impair firm labour productivity? Longitudinal evidence from," NIPE Working Papers 14/2019, NIPE - Universidade do Minho.
  • Handle: RePEc:nip:nipewp:14/2019
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    References listed on IDEAS

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    2. Holgersen, Henning & Jia, Zhiyang & Svenkerud, Simen, 2021. "Who and how many can work from home? Evidence from task descriptions," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 55, pages 1-4.
    3. Gift T. Donga & Nicolette V. Roman & Babatope O. Adebiyi & Bernard Omukunyi & Rachel Chinyakata, 2021. "Lessons Learnt during COVID-19 Lockdown: A Qualitative Study of South African Families," IJERPH, MDPI, vol. 18(23), pages 1-14, November.
    4. Roxana Săvescu & Ștefania Kifor & Raluca Dănuț & Raluca Rusu, 2022. "Transition from Office to Home Office: Lessons from Romania during COVID-19 Pandemic," Sustainability, MDPI, vol. 14(10), pages 1-14, May.
    5. Pouliakas, Konstantinos, 2020. "Working at Home in Greece: Unexplored Potential at Times of Social Distancing?," IZA Discussion Papers 13408, Institute of Labor Economics (IZA).
    6. Ourania Tzoraki & Svetlana Dimitrova & Marin Barzakov & Saad Yaseen & Vasilis Gavalas & Hani Harb & Abas Haidari & Brian P. Cahill & Alexandra Ćulibrk & Ekaterini Nikolarea & Eleni Andrianopulu & Miro, 2021. "The Impact of the COVID-19 Pandemic on the Working Conditions, Employment, Career Development and Well-Being of Refugee Researchers," Societies, MDPI, vol. 11(3), pages 1-13, July.

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    More about this item

    Keywords

    Remote work; firm labour productivity; panel data;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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