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The Work-from-home Wage Premium

Huiyu Li, Julien Sauvagnat and Tom Schmitz

No 2026-02, Working Paper Series from Federal Reserve Bank of San Francisco

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: wage; premium (search for similar items in EconPapers)
Pages: 29
Date: 2026-02-02
New Economics Papers: this item is included in nep-hrm and nep-lma
Note: PDF date: January 6, 2006.
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DOI: 10.24148/wp2026-02

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