Evidence on how working from home (WFH) affects productivity is strickingly mixed. Using administrative data from a setting where workers rotate exogenously between home and office and an algorithm assigns tasks, we estimate the average and distributional effects of WFH. WFH reduces absenteeism and, conditional on working, raises productivity by 8%, primarily through reduced distrations. The average masks substantial heterogeneity: 29% of workers are less productive at home. When supervisiors match tasks to work locations, productivity gains from 8% to 18%. Who works from home and how remote work is managed critically shape its effects.

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25 September 2024     Paper Number CEPDP2036

Download PDF - Not incentivized yet efficient: working from home in the public sector

This CEP discussion paper is published under the centre's Community Wellbeing programme.