Does remote work fuel wage inequality? Not exactly - staff working from home tend to be higher earners, but they also experience lower wage growth

Our inequality decomposition shows that while the option to work remotely primarily benefits workers in higher-paid jobs, the lower wage growth in these occupations fully offsets this effect.

Consequently, the shift to remote work has resulted in no significant change in overall inequality, but rather a substantial increase in average compensation across the board.

At first glance, it seems remote work will increase inequality by offering a perk to those already better off. However, this perception overlooks important wage growth dynamics.

The paper likened remote work to an 'in-kind benefit,' meaning it is a perk not included in a pay packet, yet contributing to overall compensation.

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