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Paper Number
2199
Paper Type
short
Description
The abrupt closure of offices during the COVID-19 lockdown has allowed millions of workers to discover advantages of remote work and led to disruptive transition from conventional office settings to remote arrangements even as the pandemic recedes. However, for firms to determine whether or not to offer remote work as a permanent working arrangement, it is essential to understand how workers value and respond to remote working opportunities. In this paper, we construct a novel dataset that comprehensively details firm-level job postings and individual-level wage records and employ difference-in-differences estimation (i.e., logit and panel regression) to examine the impact of remote work on workers' turnover and salary outcomes. Our main analyses indicate that, after the lockdown has been lifted, the propensity of switching is positively influenced by provision of remote work. Furthermore, workers who switch to remote work accept lower wage than those in onsite workplaces.
Recommended Citation
Yoon, Sojung; Chan, Jason; Lin, Jinan; and Nian, Tingting, "The Value of Remote Work in the Post-Covid Era: An Empirical Assessment of Employee Turnover and Wage" (2023). ICIS 2023 Proceedings. 9.
https://aisel.aisnet.org/icis2023/emergpand/emergpand/9
The Value of Remote Work in the Post-Covid Era: An Empirical Assessment of Employee Turnover and Wage
The abrupt closure of offices during the COVID-19 lockdown has allowed millions of workers to discover advantages of remote work and led to disruptive transition from conventional office settings to remote arrangements even as the pandemic recedes. However, for firms to determine whether or not to offer remote work as a permanent working arrangement, it is essential to understand how workers value and respond to remote working opportunities. In this paper, we construct a novel dataset that comprehensively details firm-level job postings and individual-level wage records and employ difference-in-differences estimation (i.e., logit and panel regression) to examine the impact of remote work on workers' turnover and salary outcomes. Our main analyses indicate that, after the lockdown has been lifted, the propensity of switching is positively influenced by provision of remote work. Furthermore, workers who switch to remote work accept lower wage than those in onsite workplaces.
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Comments
01-Emerging