Working from home

Too much of a good thing

Dados Bibliográficos

ID21463659
AutoresKristian Behrens (0000-0003-3595-6443, Université du Québec à Montréal), Sergey Kichko (0000-0001-9191-8332, University of Trento, autor correspondente), Jacques-François Thisse, Jacques‐François Thisse (Centre for Economic Policy Research)
Ano2024
Volume105
Páginas103990
Data de publicação2024-03-01
Open AccessSim
TipoARTICLE
PeriódicoRegional Science and Urban Economics (JOURNAL)
Identificadores do periódicoISSN: 0166-0462 • E-ISSN: 1879-2308
EditoraElsevier BV (PUBLISHER)
DOI10.1016/j.regsciurbeco.2024.103990
OpenAlexW3122254873
IdiomaEN
Citações recebidas13
Referências citadas28

We develop a general equilibrium model with skilled workers who can and unskilled workers who cannot work from home (WFH). Firms choose the amount of time they require workers in the office, whereas workers choose to either work on-site or hybrid, splitting working time between office and home. The endogenous work arrangements determine productivity, wages, and demand for residential and commercial real estate. We find that firms ‘outsource’ workers to their homes to save on real estate costs, and in doing so push beyond the WFH share that maximizes skilled workers’ productivity. This effect is more pronounced if land-use regulations are strict, thus showing another channel through which the latter may reduce productivity. More efficient information and telecommunication technologies allow firms to shift office expenditures toward skilled workers who invest more in home working space. In a nutshell, WFH may well be the ‘new margin of offshoring’ for firms

Business · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Housing, Finance, and Neoliberalism