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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. 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).
    2. 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.
    3. Pabilonia, Sabrina Wulff & Vernon, Victoria, 2020. "Telework and Time Use in the United States," IZA Discussion Papers 13260, Institute of Labor Economics (IZA).
    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. 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.
    6. Armanda Cetrulo & Dario Guarascio & Maria Enrica Virgillito, 2020. "Working from home and the explosion of enduring divides: income, employment and safety risks," LEM Papers Series 2020/38, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    7. 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.

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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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