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Mismatch in preferences for working from home: Evidence from discrete choice experiments with workers and employers

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  • Lewandowski, Piotr
  • Lipowska, Katarzyna
  • Smoter, Mateusz

Abstract

We study preferences for remote work using a large-scale discrete choice study with 10,000 workers and 1,500 employers in Poland. Workers value remote work more than employers. On average, workers are willing to sacrifice 2.9% of earnings for remote work, with hybrid work from home (WFH) for 2-3 days (5.1%) preferred over 5 days (0.6%). Employers expect a 21.0% wage cut from remote workers. This 18 pp gap between employers' and workers' valuations reflects employers' concerns over productivity loss (14 pp) and effort to manage remote workers (4 pp). Only 25-36% of employers with positive perceptions of remote work productivity show valuations of remote work that align with workers' willingness to pay for it.

Suggested Citation

  • Lewandowski, Piotr & Lipowska, Katarzyna & Smoter, Mateusz, 2023. "Mismatch in preferences for working from home: Evidence from discrete choice experiments with workers and employers," Ruhr Economic Papers 1026, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:1026
    DOI: 10.4419/96973192
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    Cited by:

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    3. Masayuki Morikawa, 2024. "Productivity dynamics of work from home: Firm-level evidence from Japan," Journal of Evolutionary Economics, Springer, vol. 34(2), pages 465-487, April.

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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