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Working from Home: Heterogenous Effects on Hours Worked and Wages

Author

Listed:
  • Arntz, Melanie
  • Ben Yahmed, Sarra
  • Berlingieri, Francesco

Abstract

Working from home has become more and more common, especially among high-skill workers, since the early 2000s. In this paper we investigate how such alternative work arrangements affect hours of work including overtime, wages, job and life satisfaction. We exploit five waves of the German Socio-Economic Panel between 1997 and 2014, a period during which the revolution in telecommunication technologies has dramatically reduced the costs to perform certain tasks at home. Controlling for individual fixed effects, we find that home-based work has led to an expansion of overtime hours among full-time employees, especially among women. However, these overtime hours seem to pay off in terms of wages for men only. We do not find that childless women are affected differently from mothers. We also control for selection into employment in a panel setting when time-varying unobserved preferences or characteristics may affect employment decision.

Suggested Citation

  • Arntz, Melanie & Ben Yahmed, Sarra & Berlingieri, Francesco, 2018. "Working from Home: Heterogenous Effects on Hours Worked and Wages," Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181630, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc18:181630
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    References listed on IDEAS

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    1. Pascale Peters & Cécile Wetzels & Kea Tijdens, 2008. "Telework: Timesaving or Time-Consuming? An Investigation into Actual Working Hours," Journal of Interdisciplinary Economics, , vol. 19(4), pages 421-442, April.
    2. Linda N. Edwards & Elizabeth Field-Hendrey, 2002. "Home-Based Work and Women's Labor Force Decisions," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 170-200, January.
    3. Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," Labour Economics, Elsevier, vol. 17(5), pages 835-847, October.
    4. Alexandre Mas & Amanda Pallais, 2017. "Valuing Alternative Work Arrangements," American Economic Review, American Economic Association, vol. 107(12), pages 3722-3759, December.
    5. Lisa J. Dettling, 2013. "Broadband in the labor market: The impact of residential high speed internet on married women's labor force participation," Finance and Economics Discussion Series 2013-65, Board of Governors of the Federal Reserve System (US).
    6. Wooldridge, Jeffrey M., 1995. "Selection corrections for panel data models under conditional mean independence assumptions," Journal of Econometrics, Elsevier, vol. 68(1), pages 115-132, July.
    7. Richard Blundell & Antoine Bozio & Guy Laroque, 2013. "Extensive and Intensive Margins of Labour Supply: Work and Working Hours in the US, the UK and France," Fiscal Studies, Institute for Fiscal Studies, vol. 34(1), pages 1-29, March.
    8. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    9. de Graaff, Thomas & Rietveld, Piet, 2007. "Substitution between working at home and out-of-home: The role of ICT and commuting costs," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(2), pages 142-160, February.
    10. Daniel Possenriede & Wolter H.J. Hassink & Janneke Plantenga, 2016. "Does temporal and locational flexibility of work increase the supply of working hours? Evidence from the Netherlands," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-34, December.
    11. Cortes, Patricia & Pan, Jessica, 2016. "When Time Binds: Returns to Working Long Hours and the Gender Wage Gap among the Highly Skilled," IZA Discussion Papers 9846, Institute of Labor Economics (IZA).
    12. Christian Dustmann & María Engracia Rochina-Barrachina, 2007. "Selection correction in panel data models: An application to the estimation of females' wage equations," Econometrics Journal, Royal Economic Society, vol. 10(2), pages 263-293, July.
    13. Deborah J. Anderson & Melissa Binder & Kate Krause, 2003. "The Motherhood Wage Penalty Revisited: Experience, Heterogeneity, Work Effort, and Work-Schedule Flexibility," ILR Review, Cornell University, ILR School, vol. 56(2), pages 273-294, January.
    14. Gerald S. Oettinger, 2011. "The Incidence and Wage Consequences of Home-Based Work in the United States, 1980–2000," Journal of Human Resources, University of Wisconsin Press, vol. 46(2), pages 237-260.
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    More about this item

    Keywords

    working from home; working hours; wages; gender; technological change;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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