Remote employees have quietly unlocked one major workplace perk: Getting paid 12% more than their in-office colleagues, Fed study finds | Fortune
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Remote employees have quietly unlocked one major workplace perk: Getting paid 12% more than their in-office colleagues, Fed study finds | Fortune
"Researchers found employees who work from home, at least some of the time, earned, on average, 12% higher hourly rates than those working fully in-person. About half of this boost was correlated with education levels, gender, and age, and when researchers controlled for these variables, they still saw about a 6% difference in wages, with remote employees still earning what researchers call a work-from-home wage premium."
"Using French administrative data and controlling for a rich set of worker and firm characteristics, we find that workers who work from home earn higher hourly wages than those who do not."
"The study noted both France and the U.S. have similar levels of employees working from home, and both countries have more remote work opportunities for higher-paying, better-educated employees."
A Federal Reserve Bank of San Francisco study analyzing nearly 25,000 French employees found that remote workers earn significantly higher hourly wages than their in-office counterparts. The research, using French Labor Force survey data and administrative records, revealed a 12% wage premium for remote workers. Approximately half of this difference correlates with worker characteristics like education, gender, and age. Even after controlling for these variables, a 6% wage premium persists for remote employees. The study notes that both France and the U.S. show similar remote work patterns, with higher-paying, better-educated positions more likely to offer flexible arrangements. This finding contrasts with earlier research showing workers' willingness to accept lower pay for remote options.
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