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Remote Work, Wages, and Hours Worked in the United States

Author

Listed:
  • Pabilonia, Sabrina Wulff

    (U.S. Bureau of Labor Statistics)

  • Vernon, Victoria

    (Empire State University)

Abstract

Remote wage employment gradually increased in the United States during the four decades prior to the pandemic, then surged in 2020 due to social distancing policies implemented to stem the spread of COVID-19. Using the 2010–2021 American Community Survey, the authors examine trends in wage and hours differentials for full-time remote workers and office-based workers as well as within occupation differences in wage growth by work location. Throughout the period, remote workers earned higher wages than those working on-site, and the difference increased sharply during the pandemic. Real wages grew 4.4 percent faster for remote workers within detailed occupation groups and remote work intensity was positively associated with wage growth across occupations. Before the pandemic, remote workers worked substantially longer hours per week than on-site workers, but by 2021, hours were similar.

Suggested Citation

  • Pabilonia, Sabrina Wulff & Vernon, Victoria, 2023. "Remote Work, Wages, and Hours Worked in the United States," IZA Discussion Papers 16420, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16420
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    References listed on IDEAS

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    1. Cevat Giray Aksoy & Jose Maria Barrero & Nicholas Bloom & Steven J. Davis & Mathias Dolls & Pablo Zarate, 2022. "Working from Home Around the World," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 53(2 (Fall)), pages 281-360.
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    5. Dustin R. White, 2019. "Agency Theory and Work from Home," LABOUR, CEIS, vol. 33(1), pages 1-25, March.
    6. 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.
    7. Carmen Aina & Irene Brunetti & Chiara Mussida & Sergio Scicchitano, 2023. "Distributional effects of COVID-19," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(1), pages 221-256, March.
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    Cited by:

    1. Benjamin Cowan, 2024. "Time use, college attainment, and the working-from-home revolution," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(3), pages 1-27, September.

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    More about this item

    Keywords

    remote work; working from home; wages; usual hours worked; COVID-19;
    All these keywords.

    JEL classification:

    • J20 - Labor and Demographic Economics - - Demand and Supply of Labor - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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