How Much Do Workers Actually Value Working from Home?

Markus Nagler, Johannes Rincke and Erwin Winkler ()

No 10073, CESifo Working Paper Series from CESifo

Abstract: Working from home (WFH) has become ubiquitous around the world. We ask how much workers actually value this job attribute. Using a stated-preference experiment, we show that German employees are willing to give up 7.7% of their earnings for WFH, but they value other job attributes more. For instance, the willingness-to-pay is 13.2% for reducing a commute of 45 to 15 minutes. WFH valuations are heterogeneous across workers and WFH substantially contributes to compensation inequality across education levels. Finally, valuations meaningfully interact with commuting distance and WFH reduces (but does not close) the gender gap in willingness-to-pay to avoid commuting.

Keywords: working from home; working conditions; inequality; commuting; compensating wage differentials (search for similar items in EconPapers)
JEL-codes: J20 J31 J33 J81 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-dcm, nep-eur, nep-hrm, nep-lma and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_10073

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