Working Paper: NBER ID: w28251
Authors: Rka Juhsz; Mara P. Squicciarini; Nico Voigtländer
Abstract: This paper examines the future of remote work by drawing parallels between two contexts: The move from home to factory-based production during the Industrial Revolution and the shift to work from home today. Both are characterized by a similar trade-off: the potential productivity advantage of the new working arrangement made possible by technology (mechanization or ICT), versus organizational barriers such as coordinating workers. Using contemporary data, we show that organizational barriers seem to be present today. Without further technological or organizational innovations, remote work may not be here to stay just yet.
Keywords: remote work; industrial revolution; coordination; organizational barriers
JEL Codes: F63; O14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Technological feasibility for remote work (L96) | Organizational costs associated with coordinating remote workers (D23) |
| Organizational barriers (L22) | Sustainability of remote work (J29) |
| Need for coordination (E61) | Remote work adoption prior to the pandemic (J62) |
| Technological feasibility of remote work (L96) | Share of workers working from home during pandemic (J22) |
| Need for coordination (E61) | Share of workers working from home during pandemic (J22) |
| Organizational barriers (L22) | Productivity gains from remote work (J29) |