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Work-from-Home in Transition: Adoption, Persistence, and Labor Market Impacts

Paper Session

Sunday, Jan. 4, 2026 10:15 AM - 12:15 PM (EST)

Philadelphia Marriott Downtown, Room 410
Hosted By: American Economic Association
  • Chair: Erik Brynjolfsson, Stanford University and NBER

How Colocation Shapes Communication: Evidence from a Hybrid Work Experiment

Prithwiraj Choudhury
,
Harvard Business School
Miguel Espinosa
,
Bocconi University
Tarun Khanna
,
Harvard Business School
Christos Makridis
,
Arizona State University and Gallup
Kyle Schirmann
,
Harvard Business School

Abstract

Firms’ rapid adoption of hybrid work has sparked interest in understanding how in-person presence shapes internal communication. This paper focuses on isolating the causal effect of colocation on communication patterns within firms. Using a randomized hybrid work field experiment involving HR employees and unique text data from electronic communication, we provide direct causal evidence on how being colocated alters both the volume and nature of internal communication. A machine learning classification of email content shows that colocation acts as a substitute for horizontal, coordination-related communication, but sometimes as a complement to vertical and horizontal, monitoring-related communication. We also find that employees working from home 2-3 days per week emerged as knowledge brokers: they communicated with more peers and produced or circulated more diverse, non-overlapping information than peers who worked more or fewer days from home. Hybrid work, then, represents not a compromise between fully remote and fully in-person work, but rather a structural design choice that can improve an organization’s ability to recombine and leverage distant knowledge.

Has the Rise of Work from Home Reduced the Motherhood Penalty in the Labor Market?

Emma Harrington
,
University of Virginia
Matt Kahn
,
University of South Carolina and NBER

Abstract

Has the Rise of Work-from-Home Reduced the Motherhood Penalty in the Labor Market?
Abstract: When women become mothers, they often leave the labor force. Will the recent rise of work-from-home (WFH) reduce the motherhood penalty in the labor market, particularly in traditionally family-unfriendly careers? In the decade before the pandemic, technological improvements increased WFH for workers with some college degrees but not others. In degrees where WFH increased, motherhood gaps in employment narrowed. On average, a ten percent increase in WFH is associated with an 0.78 percentage point (or 0.94%) increase in mothers’ employment relative to that of other women. This pattern holds when defining the change in WFH using only the behavior of men, when instrumenting for the change in WFH using the in-person nature of work, and when conditioning on other changes within affected degrees in, e.g., hours and income. These trends suggest that the rise of WFH transformed a broader set of jobs into more family-friendly occupations. Traditionally flexible jobs in sectors like education and pharmacy were relatively unaffected by the rise of WFH, while motherhood employment gaps narrowed in traditionally family-unfriendly fields like finance and marketing.

Why Does Working from Home Vary Across Countries and People?

Pablo Zarate
,
Princeton University
Matthias Dolls
,
ifo Center for Macroeconomics and Surveys
Steven J. Davis
,
Hoover Institution and NBER
Nicholas Bloom
,
Stanford University and NBER
Jose Maria Barrero
,
ITAM

Abstract

We use two surveys to assess why work from home (WFH) varies so much across countries and people. A measure of cultural individualism accounts for about one-third of the cross-country variation in WFH rates. Australia, Canada, the UK, and the US score highly on individualism and WFH rates, whereas Asian countries score low on both. Other factors such as cumulative lockdown stringency, population density, industry mix, and GDP per capita also matter, but they account for less of the variation. When looking across individual workers in the United States, we find that industry mix, population density, and lockdown severity help account for current WFH rates, as does the partisan leaning of the county in which the worker resides. We conclude that multiple factors influence WFH rates, and technological feasibility is only one of them.

Measuring the Ins and Outs of Remote Work: New Evidence from the Gallup Workplace Panel

Christos Makridis
,
Arizona State University and Gallup

Abstract

This study novel longitudinal survey data to analyze transitions into and out of remote work (work from home, or WFH) during the COVID-19 pandemic. Drawing on two waves of the nationally representative Remote Life Survey conducted in collaboration with Gallup, we document persistent heterogeneity in WFH status across individuals, occupations, and firm characteristics. We find that remote work adoption is highly persistent: over 70% of those who adopted WFH in 2020 continued to work remotely in 2021. Larger firms were initially more likely to adopt remote work practices, but the relationship between firm size and long-term WFH adoption follows an inverse-U shape. Occupational “remotability,” as measured by the Dingel-Neiman score, significantly predicts both temporary and permanent WFH transitions. Childcare responsibilities exhibit only limited correlation with WFH status, with some influence observed during the initial pandemic wave. These findings underscore the role of occupation and firm-level factors in shaping WFH dynamics and point to durable changes in work organization beyond the pandemic period.
JEL Classifications
  • D1 - Household Behavior and Family Economics
  • J2 - Demand and Supply of Labor