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The Evolution of Work from Home

Author

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  • José María Barrero
  • Nicholas Bloom
  • Steven J. Davis

Abstract

Full days worked at home account for 28 percent of paid workdays among Americans 20–64 years old, as of mid-2023. That's about four times the 2019 rate and ten times the rate in the mid-1990s. We first explain why the big shift to work from home has endured rather than reverting to prepandemic levels. We then consider how work-from-home rates vary by worker age, sex, education, parental status, industry and local population density, and why it is higher in the United States than other countries. We also discuss some implications for pay, productivity, and the pace of innovation. Over the next five years, US business executives anticipate modest increases in work-from-home rates at their own companies. Other factors that portend an enduring shift to work from home include the ongoing adaptation of managerial practices and further advances in technologies, products, and tools that support remote work.

Suggested Citation

  • José María Barrero & Nicholas Bloom & Steven J. Davis, 2023. "The Evolution of Work from Home," Journal of Economic Perspectives, American Economic Association, vol. 37(4), pages 23-50, Fall.
    • Handle: RePEc:aea:jecper:v:37:y:2023:i:4:p:23-50
    DOI: 10.1257/jep.37.4.23
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    Cited by:

    1. Pablo Zarate & Mathias Dolls & Steven J. Davis & Nicholas Bloom & Jose Maria Barrero & Cevat Giray Aksoy, 2024. "Why Does Working from Home Vary Across Countries and People?," NBER Working Papers 32374, National Bureau of Economic Research, Inc.
    2. Jirjahn, Uwe & Rienzo, Cinzia, 2024. "Working from Home and Performance Pay: Individual or Collective Payment Schemes?," GLO Discussion Paper Series 1481, Global Labor Organization (GLO).
    3. Bick, Alexander & Blandin, Adam & Mertens, Karel & Rubinton, Hannah, 2024. "Work from Home and Interstate Migration," CEPR Discussion Papers 19101, C.E.P.R. Discussion Papers.
    4. Alexander Bick & Adam Blandin & Aidan Caplan & Tristan Caplan, 2024. "Measuring Trends in Work From Home: Evidence from Six U.S. Datasets," Working Papers 2024-023, Federal Reserve Bank of St. Louis.
    5. Mathieu P.A. Steijn, 2024. "The persistence and nature of the labor reallocation shock during the COVID-19 crisis," Tinbergen Institute Discussion Papers 24-047/V, Tinbergen Institute.
    6. Steven J. Davis, 2024. "The Big Shift in Working Arrangements: Eight Ways Unusual," NBER Working Papers 32363, National Bureau of Economic Research, Inc.
    7. Rosalie L. Tung, 2024. "Reflections on the 2023 JIBS Decade Award: Global cities and multinational enterprise location strategy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(1), pages 1-9, February.
    8. Malak Kandoussi, 2023. "A New Norm? Exploring the Shift to Working From Home in the Post-Pandemic Labor Market," Documents de recherche 23-09, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    9. Esposito, P. & Mendolia, S. & Scicchitano, S. & Tealdi, C., 2024. "Working from home and job satisfaction: The role of gender and personality traits," GLO Discussion Paper Series 1382, Global Labor Organization (GLO).
    10. Bietenbeck, Jan & Irmert, Natalie & Nilsson, Therese, 2024. "Individualism and Working from Home," Working Paper Series 1498, Research Institute of Industrial Economics.
    11. Goux, Dominique & Maurin, Eric, 2024. "Sick of Working from Home?," IZA Discussion Papers 16848, Institute of Labor Economics (IZA).
    12. Bernardus Doornik & Deniz Igan & Enisse Kharroubi, 2023. "Labour markets: what explains the resilience?," BIS Quarterly Review, Bank for International Settlements, December.

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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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