Are workers willing to accept pay cuts in exchange for remote working flexibility?

António Dias Da Silva and Marco Weißler

Economic Bulletin Boxes, 2025, vol. 6

Abstract: Since the pandemic, working from home has become more common. According to 2025 data, around 20% of employees in the euro area have a hybrid working pattern, i.e. they work from home between two and four days per week. Although a substantial share of workers (44%) work from home at least one day per week, most workers would not be willing to accept a pay cut in exchange for hybrid working possibilities. However, those employees who value being able to work from home would be willing to forgo up to 8.7% of their wages for this option. This suggests that remote working flexibility can play a role in attracting and retaining workers, especially when labour markets are tight. JEL Classification: J28, J33

Keywords: pay; Working from home (search for similar items in EconPapers)
Date: 2025-09
Note: 686280
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