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Working from Home: Heterogenous Effects on Hours Worked and Wages

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  • 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
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    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.

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    More about this item

    Keywords

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

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