The Work-from-Home Wage Premium

Huiyu Li, Julien Sauvagnat and Tom Schmitz

No 20996, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Using administrative data from France, we document that within the same detailed occupation, industry, and commuting zone, workers who work from home earn on average 12% higher hourly wages than fully on-site workers. Approximately half of this wage premium is accounted for by observable worker characteristics (such as education, gender, and age) and firm characteristics (such as size and productivity). The remaining 6% wage premium largely reflects selection: workers who work from home after the COVID-19 pandemic already earned higher wages before the pandemic.

Keywords: Wages; Amenities; Work from home (search for similar items in EconPapers)
JEL-codes: J24 J31 (search for similar items in EconPapers)
Date: 2026-01
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