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The Evolution of Work from Home

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  • Jose Maria 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, according to the Survey of Working Arrangements and Attitudes. That’s about four times the 2019 rate and ten times the rate in the mid-1990s that we estimate in time-use data. We first explain why the big shift to work from home has endured rather than reverting to pre-pandemic 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 of the big shift for pay, productivity, and the pace of innovation. Over the next five years, U.S. business executives anticipate modest increases in the share of fully remote jobs at their own companies and in the share of jobs with hybrid arrangements, whereby the employee splits the workweek between home and employer premises. 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

  • Jose Maria Barrero & Nicholas Bloom & Steven J. Davis, 2023. "The Evolution of Work from Home," NBER Working Papers 31686, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:31686
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    Cited by:

    1. 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.
    2. Zarate, Pablo & Dolls, Mathias & Davis, Steven & Bloom, Nicholas & Barrero, Jose Maria & Aksoy, Cevat Giray, 2024. "Why Does Working from Home Vary Across Countries and People?," CEPR Discussion Papers 19003, C.E.P.R. Discussion Papers.
    3. Alexander Bick & Adam Blandin & Karel Mertens & Hannah Rubinton, 2024. "Work from Home and Interstate Migration," Working Papers 2024-012, Federal Reserve Bank of St. Louis.
    4. Jirjahn, Uwe & Rienzo, Cinzia, 2024. "Working from Home and Performance Pay: Individual or Collective Payment Schemes?," IZA Discussion Papers 17234, Institute of Labor Economics (IZA).
    5. Davis, Steven J., 2024. "The Big Shift in Working Arrangements: Eight Ways Unusual," IZA Discussion Papers 16932, Institute of Labor Economics (IZA).
    6. Bietenbeck, Jan & Irmert, Natalie & Nilsson, Therese, 2024. "Individualism and Working from Home," Working Paper Series 1498, Research Institute of Industrial Economics.
    7. Goux, Dominique & Maurin, Eric, 2024. "Sick of Working from Home?," IZA Discussion Papers 16848, Institute of Labor Economics (IZA).
    8. 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.
    9. 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.
    10. Bernardus Doornik & Deniz Igan & Enisse Kharroubi, 2023. "Labour markets: what explains the resilience?," BIS Quarterly Review, Bank for International Settlements, December.
    11. 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.
    12. Masayuki Morikawa, 2024. "Productivity dynamics of work from home: Firm-level evidence from Japan," Journal of Evolutionary Economics, Springer, vol. 34(2), pages 465-487, April.
    13. Esposito, Piero & Mendolia, Silvia & Scicchitano, Sergio & Tealdi, Cristina, 2024. "Working from Home and Job Satisfaction: The Role of Gender and Personality Traits," IZA Discussion Papers 16751, Institute of Labor Economics (IZA).
    14. Restrepo, Brandon J. & Zeballos, Eliana, 2024. "Who Shops for Groceries Online?," Economic Research Report 346028, United States Department of Agriculture, Economic Research Service.
    15. Benjamin Schneider & Jane Whittle, 2024. "Where is the Place in the History of Work? Worksites, Workspaces, and the Home-Work Nexus," Oxford Economic and Social History Working Papers _213, University of Oxford, Department of Economics.
    16. Meister, Lorenz & Menkhoff, Lukas & Schröder, Carsten, 2024. "Work from Home, Stock Market Participation, and Inequality," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302335, Verein für Socialpolitik / German Economic Association.
    17. Belloc, Ignacio & Gimenez-Nadal, José Ignacio & Molina, José Alberto, 2024. "Teleworking and Travel Purposes: UK Evidence after the COVID-19 Pandemic," IZA Discussion Papers 17413, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • 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
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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