Working From Home Isn’t a Free Company Benefit
A new research paper says remote employment has an “amenity” value that helps explain why wage increases have lagged behind those for consumer prices. That’s good news for the Fed.
Convenient, but it comes with a cost.
Photographer: Daniel Acker/Bloomberg
Americans’ new-found ability to work remotely may help explain why inflation-adjusted wage growth has been so disappointing in the past year, according to new research from a group of economists. The findings are cold comfort for workers struggling to keep up with consumer prices, but they may be good news for inflation — at least for now.
As the thinking goes, remote work has an “amenity value,” much like a company car or an office gym. Remote and hybrid workers spend less time commuting and grooming themselves to go into the office, and they may benefit from the ability to finish tasks after their kids go to bed.