When the Right to Work from Home Works

Marco Francesconi, Marco Alberto De Benedetto and Maria De Paola

No 21966, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We estimate the labor market effects of Italy's statutory priority to work from home (WFH) for parents of children under age twelve. Using population-wide administrative data and a sharp regression discontinuity design, we find that eligibility raises mothers' annual earnings by 1.6-2.3 percent in high-WFH-intensity firms, alongside increases in paid days and weeks. Mothers in low-WFH-intensity firms and fathers in general show no detectable effects. The estimates have an intention-to-treat interpretation and persist beyond the pandemic. Placebo tests show no effects before the pandemic, in firms that never adopted WFH, or among manual workers, consistent with a WFH mechanism.

Keywords: Flexible work arrangements; Female labor supply; Work-family policy; Remote-work intensity; Work organization; Regression discontinuity (search for similar items in EconPapers)
JEL-codes: C31 J16 J22 J31 J81 (search for similar items in EconPapers)
Date: 2026-09
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