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Mismatch in preferences for working from home: Evidence from discrete choice experiments with workers and employers

Piotr Lewandowski, Katarzyna Lipowska and Mateusz Smoter

No 1026, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: We study preferences for remote work using a large-scale discrete choice study with 10,000 workers and 1,500 employers in Poland. Workers value remote work more than employers. On average, workers are willing to sacrifice 2.9% of earnings for remote work, with hybrid work from home (WFH) for 2-3 days (5.1%) preferred over 5 days (0.6%). Employers expect a 21.0% wage cut from remote workers. This 18 pp gap between employers' and workers' valuations reflects employers' concerns over productivity loss (14 pp) and effort to manage remote workers (4 pp). Only 25-36% of employers with positive perceptions of remote work productivity show valuations of remote work that align with workers' willingness to pay for it.

Keywords: Working from home; remote work; discrete choice experiment; willingness to pay (search for similar items in EconPapers)
JEL-codes: J21 J31 J81 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-dcm, nep-exp, nep-hrm and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:1026

DOI: 10.4419/96973192

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