Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/267306 
Year of Publication: 
2022
Series/Report no.: 
CESifo Working Paper No. 10073
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
Working from home (WFH) has become ubiquitous around the world. We ask how much workers actually value this job attribute. Using a stated-preference experiment, we show that German employees are willing to give up 7.7% of their earnings for WFH, but they value other job attributes more. For instance, the willingness-to-pay is 13.2% for reducing a commute of 45 to 15 minutes. WFH valuations are heterogeneous across workers and WFH substantially contributes to compensation inequality across education levels. Finally, valuations meaningfully interact with commuting distance and WFH reduces (but does not close) the gender gap in willingness-to-pay to avoid commuting.
Subjects: 
working from home
working conditions
inequality
commuting
compensating wage differentials
JEL: 
J20
J31
J33
J81
Document Type: 
Working Paper
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