IDEAS home Printed from https://ideas.repec.org/p/zbw/vfsc18/181630.html
   My bibliography  Save this paper

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," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181630, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc18:181630
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Gutiérrez-i-Puigarnau, Eva & van Ommeren, Jos N., 2010. "Labour supply and commuting," Journal of Urban Economics, Elsevier, vol. 68(1), pages 82-89, July.
    4. Betsey Stevenson & Justin Wolfers, 2009. "The Paradox of Declining Female Happiness," American Economic Journal: Economic Policy, American Economic Association, vol. 1(2), pages 190-225, August.
    5. Nicholas Bloom & James Liang & John Roberts & Zhichun Jenny Ying, 2015. "Does Working from Home Work? Evidence from a Chinese Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(1), pages 165-218.
    6. Claudia Goldin & Lawrence F. Katz, 2011. "The Cost of Workplace Flexibility for High-Powered Professionals," The ANNALS of the American Academy of Political and Social Science, , vol. 638(1), pages 45-67, November.
    7. Henrik Kleven & Camille Landais & Jakob Egholt Søgaard, 2019. "Children and Gender Inequality: Evidence from Denmark," American Economic Journal: Applied Economics, American Economic Association, vol. 11(4), pages 181-209, October.
    8. 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 (U.S.).
    9. Alexandre Mas & Amanda Pallais, 2017. "Valuing Alternative Work Arrangements," American Economic Review, American Economic Association, vol. 107(12), pages 3722-3759, December.
    10. Haoran He & David Neumark & Qian Weng, 2021. "Do Workers Value Flexible Jobs? A Field Experiment," Journal of Labor Economics, University of Chicago Press, vol. 39(3), pages 709-738.
    11. Emmanuel Vazquez & Hernan Winkler, 2017. "How Is the Internet Changing Labor Market Arrangements? Evidence from Telecommunications Reforms in Europe," CEDLAS, Working Papers 0210, CEDLAS, Universidad Nacional de La Plata.
    12. Martin Kroh & Rainer Siegers, 2014. "Documentation of Sample Sizes and Panel Attrition in the German Socio Economic Panel (SOEP) (1984 until 2013)," Data Documentation 75, DIW Berlin, German Institute for Economic Research.
    13. 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.
    14. 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.
    15. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    16. Clark, Andrew E. & Oswald, Andrew J., 1996. "Satisfaction and comparison income," Journal of Public Economics, Elsevier, vol. 61(3), pages 359-381, September.
    17. 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.
    18. 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.
    19. Song, Younghwan & Gao, Jia, 2018. "Does Telework Stress Employees Out? A Study on Working at Home and Subjective Well-Being for Wage/Salary Workers," IZA Discussion Papers 11993, Institute of Labor Economics (IZA).
    20. Bryan, Mark L. & Sevilla, Almudena, 2014. "Flexible Working and Couples' Coordination of Time Schedules," IZA Discussion Papers 8304, Institute of Labor Economics (IZA).
    21. 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.
    22. Glenn Dutcher, E., 2012. "The effects of telecommuting on productivity: An experimental examination. The role of dull and creative tasks," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 355-363.
    23. Eva Gutierrez-i-Puigarnau & Jos van Ommeren, 2009. "Labour Supply and Commuting: Implications for Optimal Road Taxes," Tinbergen Institute Discussion Papers 09-008/3, Tinbergen Institute.
    24. V. Joseph Hotz & Per Johansson & Arizo Karimi, 2017. "Parenthood, Family Friendly Workplaces, and the Gender Gaps in Early Work Careers," NBER Working Papers 24173, National Bureau of Economic Research, Inc.
    25. 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.
    26. Cogan, John F, 1981. "Fixed Costs and Labor Supply," Econometrica, Econometric Society, vol. 49(4), pages 945-963, June.
    27. Ada Ferrer-i-Carbonell & Paul Frijters, 2004. "How Important is Methodology for the estimates of the determinants of Happiness?," Economic Journal, Royal Economic Society, vol. 114(497), pages 641-659, July.
    28. 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).
    29. 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.
    30. Haoran He & David Neumark & Qian Weng, 2019. "Do Workers Value Flexible Jobs? A Field Experiment on Compensating Differentials," Natural Field Experiments 00667, The Field Experiments Website.
    31. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    32. Daniel Wheatley, 2017. "Employee satisfaction and use of flexible working arrangements," Work, Employment & Society, British Sociological Association, vol. 31(4), pages 567-585, August.
    33. Black, Dan A. & Kolesnikova, Natalia & Taylor, Lowell J., 2014. "Why do so few women work in New York (and so many in Minneapolis)? Labor supply of married women across US cities," Journal of Urban Economics, Elsevier, vol. 79(C), pages 59-71.
    34. 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.
    35. Nick Bloom & John Van Reenen, 2006. "Management Practices, Work--L ife Balance, and Productivity: A Review of Some Recent Evidence," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 22(4), pages 457-482, Winter.
    36. Karl Brenke, 2014. "Heimarbeit: immer weniger Menschen in Deutschland gehen ihrem Beruf von zu Hause aus nach," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 81(8), pages 131-139.
    37. Claudia Kröll & Stephan Nüesch, 2017. "The Effects of Flexible Work Practices on Employee Attitudes: Evidence from a Large-Scale Panel Study in Germany," SOEPpapers on Multidisciplinary Panel Data Research 906, DIW Berlin, The German Socio-Economic Panel (SOEP).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Deole, Sumit S. & Deter, Max & Huang, Yue, 2023. "Home sweet home: Working from home and employee performance during the COVID-19 pandemic in the UK," Labour Economics, Elsevier, vol. 80(C).
    2. Fuchs, Michaela & Otto, Anne & Fritzsche, Birgit, 2021. "Systemrelevante Berufe und das Potenzial für Homeoffice: Eine geschlechtsspezifische Bestandsaufnahme für Thüringen," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen-Anhalt-Thüringen 202101, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    3. Battisti, Enrico & Alfiero, Simona & Leonidou, Erasmia, 2022. "Remote working and digital transformation during the COVID-19 pandemic: Economic–financial impacts and psychological drivers for employees," Journal of Business Research, Elsevier, vol. 150(C), pages 38-50.
    4. Malin, Lydia & Jansen, Anika & Seyda, Susanne & Flake, Regina, 2019. "Fachkräfteengpässe in Unternehmen: Fachkräftesicherung in Deutschland - diese Potenziale gibt es noch," KOFA-Studien 2/2019, Kompetenzzentrum Fachkräftesicherung (KOFA), Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    5. Pabilonia, Sabrina Wulff & Vernon, Victoria, 2020. "Telework and Time Use in the United States," GLO Discussion Paper Series 546, Global Labor Organization (GLO).
    6. Otto, Anne & Fuchs, Michaela & Stabler, Jochen, 2021. "Systemrelevante Berufe und das Potenzial für Homeoffice: Eine geschlechtsspezifische Bestandsaufnahme für das Saarland," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Rheinland-Pfalz-Saarland 202101, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Jean-Victor Alipour & Oliver Falck & Simone Schüller, 2020. "Homeoffice während der Pandemie und die Implikationen für eine Zeit nach der Krise," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 73(07), pages 30-36, July.
    8. A. Cetrulo & D. Guarascio & M. E. Virgillito, 2022. "Working from home and the explosion of enduring divides: income, employment and safety risks," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 39(2), pages 345-402, July.
    9. Michael Christl & Silvia De Poli & Dénes Kucsera & Hanno Lorenz, 2022. "COVID-19 and (gender) inequality in income: the impact of discretionary policy measures in Austria," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 158(1), pages 1-17, December.
    10. Mohammadjavad Javadinasr & Tassio B. Magassy & Ehsan Rahimi & Motahare & Mohammadi & Amir Davatgari & Abolfazl & Mohammadian & Deborah Salon & Matthew Wigginton Bhagat-Conway & Rishabh Singh Chauhan &, 2021. "The Enduring Effects of COVID-19 on Travel Behavior in the United States: A Panel Study on Observed and Expected Changes in Telecommuting, Mode Choice, Online Shopping and Air Travel," Papers 2109.07988, arXiv.org.
    11. Bonin, Holger & Eichhorst, Werner & Kaczynska, Jennifer & Kümmerling, Angelika & Rinne, Ulf & Scholten, Annika & Steffes, Susanne, 2020. "Verbreitung und Auswirkungen von mobiler Arbeit und Homeoffice," IZA Research Reports 99, Institute of Labor Economics (IZA).
    12. Melanie Arntz & Sarra Ben Yahmed & Francesco Berlingieri, 2020. "Working from Home and COVID-19: The Chances and Risks for Gender Gaps," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 55(6), pages 381-386, November.
    13. Duanyi Yang & Erin L. Kelly & Laura D. Kubzansky & Lisa Berkman, 2023. "Working from Home and Worker Well-being: New Evidence from Germany," ILR Review, Cornell University, ILR School, vol. 76(3), pages 504-531, May.
    14. Fuchs, Michaela & Otto, Anne & Fritzsche, Birgit, 2021. "Systemrelevante Berufe und das Potenzial für Homeoffice: Eine geschlechtsspezifische Bestandsaufnahme für Sachsen-Anhalt," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen-Anhalt-Thüringen 202102, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    15. Antonio Estache & Simon Tooth, 2020. "On the scope for work-from-home in high and upper middle-income countries," Working Papers ECARES 2020-46, ULB -- Universite Libre de Bruxelles.
    16. Otto, Anne & Fuchs, Michaela & Wydra-Somaggio, Gabriele & Stabler, Jochen, 2021. "Systemrelevante Berufe und das Potenzial für Homeoffice: Eine geschlechtsspezifische Bestandsaufnahme für Rheinland-Pfalz," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Rheinland-Pfalz-Saarland 202102, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    17. Consolo, Agostino & Cette, Gilbert & Bergeaud, Antonin & Labhard, Vincent & Osbat, Chiara & Kosekova, Stanimira & Anyfantaki, Sofia & Basso, Gaetano & Basso, Henrique & Bobeica, Elena & Ciapanna, Eman, 2021. "Digitalisation: channels, impacts and implications for monetary policy in the euro area," Occasional Paper Series 266, European Central Bank.
    18. James Lennox, 2020. "More working from home will change the shape and size of cities," Centre of Policy Studies/IMPACT Centre Working Papers g-306, Victoria University, Centre of Policy Studies/IMPACT Centre.
    19. Luca Bonacini & Giovanni Gallo & Sergio Scicchitano, 2021. "Working from home and income inequality: risks of a ‘new normal’ with COVID-19," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(1), pages 303-360, January.
    20. Manuel Denzer & Philipp Grunau, 2021. "The Impacts of Working from Home on Individual Health and Well-being," Working Papers 2106, Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arntz, Melanie & Ben Yahmed, Sarra & Berlingieri, Francesco, 2022. "Working from home, hours worked and wages: Heterogeneity by gender and parenthood," Labour Economics, Elsevier, vol. 76(C).
    2. Alexandre Mas & Amanda Pallais, 2020. "Alternative Work Arrangements," Annual Review of Economics, Annual Reviews, vol. 12(1), pages 631-658, August.
    3. Sabrina Wulff Pabilonia & Victoria Vernon, 2022. "Telework, Wages, and Time Use in the United States," Review of Economics of the Household, Springer, vol. 20(3), pages 687-734, September.
    4. Marie Boltz & Bart Cockx & Ana Maria Diaz & Luz Magdalena Salas, 2023. "How does working‐time flexibility affect workers' productivity in a routine job? Evidence from a field experiment," British Journal of Industrial Relations, London School of Economics, vol. 61(1), pages 159-187, March.
    5. Pabilonia, Sabrina Wulff & Vernon, Victoria, 2020. "Telework and Time Use in the United States," GLO Discussion Paper Series 546, Global Labor Organization (GLO).
    6. Grace Lordan & Jörn‐Steffen Pischke, 2022. "Does Rosie Like Riveting? Male and Female Occupational Choices," Economica, London School of Economics and Political Science, vol. 89(353), pages 110-130, January.
    7. Haoran He & David Neumark & Qian Weng, 2021. "Do Workers Value Flexible Jobs? A Field Experiment," Journal of Labor Economics, University of Chicago Press, vol. 39(3), pages 709-738.
    8. Burdett, Ashley & Etheridge, Ben & Tang, Li & Wang, Yikai, 2024. "Worker productivity during Covid-19 and adaptation to working from home," European Economic Review, Elsevier, vol. 167(C).
    9. Haoran He & David Neumark & Qian Weng, 2019. "Do Workers Value Flexible Jobs? A Field Experiment on Compensating Differentials," Natural Field Experiments 00667, The Field Experiments Website.
    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. Benny, Liza & Bhalotra, Sonia & Fernández, Manuel, 2021. "Occupation flexibility and the graduate gender wage gap in the UK," ISER Working Paper Series 2021-05, Institute for Social and Economic Research.
    12. Borghorst, Malte & Mulalic, Ismir & van Ommeren, Jos, 2024. "Commuting, gender and children," Journal of Urban Economics, Elsevier, vol. 144(C).
    13. Van Landeghem, Bert, 2012. "A test for the convexity of human well-being over the life cycle: Longitudinal evidence from a 20-year panel," Journal of Economic Behavior & Organization, Elsevier, vol. 81(2), pages 571-582.
    14. Hirte, Georg & Laes, Renée & Gerike, Regine, 2023. "Working from self-driving cars," Transportation Research Part A: Policy and Practice, Elsevier, vol. 176(C).
    15. Manuel Denzer & Philipp Grunau, 2024. "The impacts of working from home on individual health and well-being," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 25(5), pages 743-762, July.
    16. Dominique Meurs & Elena Vilar & Claudio Lucifora, 2019. "Having a child? Here is the bill - Parenthood, Earnings and Careers in an Internal Labor," EconomiX Working Papers 2019-13, University of Paris Nanterre, EconomiX.
    17. Alexandre Mas & Amanda Pallais, 2017. "Valuing Alternative Work Arrangements," American Economic Review, American Economic Association, vol. 107(12), pages 3722-3759, December.
    18. Anja Iseke, 2014. "The Part-Time Job Satisfaction Puzzle: Different Types of Job Discrepancies and the Moderating Effect of Family Importance," British Journal of Industrial Relations, London School of Economics, vol. 52(3), pages 445-469, September.
    19. Morchio, Iacopo & Moser, Christian, 2018. "The Gender Pay Gap: Micro Sources and Macro Consequences," MPRA Paper 99276, University Library of Munich, Germany, revised 24 Mar 2020.
    20. Deole, Sumit S. & Deter, Max & Huang, Yue, 2023. "Home sweet home: Working from home and employee performance during the COVID-19 pandemic in the UK," Labour Economics, Elsevier, vol. 80(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc18:181630. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/vfsocea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.