Journal of Economic Perspectives
ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)
The Evolution of Work from Home
Journal of Economic Perspectives
(pp. 23–50)
(Complimentary)
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.Citation
Barrero, José MarÃa, Nicholas Bloom, and Steven J. Davis. 2023. "The Evolution of Work from Home." Journal of Economic Perspectives 37 (4): 23–50. DOI: 10.1257/jep.37.4.23Additional Materials
JEL Classification
- I12 Health Behavior
- J22 Time Allocation and Labor Supply
- J24 Human Capital; Skills; Occupational Choice; Labor Productivity
- J31 Wage Level and Structure; Wage Differentials
- M54 Personnel Economics: Labor Management