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We use the most recent wave of the German Qualifications and Career Survey to reveal a substantial wage premium in a Mincer regression for workers performing their job from home. The premium accounts for more than 10% and persists within narrowly defined jobs as well as after controlling for workplace characteristics. In a next step, we provide evidence on substantial regional variation in the share of jobs that can be done from home in Germany. Our analysis reveals a strong, positive relation between the share of jobs with working from home opportunities and the mean worker income in a district. Assuming that jobs with the opportunity of remote work are more crisis proof, our results suggest that the COVID-19 pandemic might affect poorer regions to a greater extent. Hence, examining regional disparities is central for policy-makers in choosing economic policies to mitigate the consequences of this crisis.
Original language | English |
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Journal | Jahrbucher fur Nationalokonomie und Statistik |
Volume | 241 |
Issue | 3 |
Pages (from-to) | 373-404 |
Number of pages | 32 |
ISSN | 0021-4027 |
DOIs | |
Publication status | Published - Jun 2021 |
Publisher Copyright:
© 2020 Walter de Gruyter GmbH, Berlin/Boston 2020.
Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.
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ID: 219298074