US study says employers can limit wage growth by letting staff work from home - Daily Mail

Summary

Employers can keep wages low if they let their employees work from home, according to an American study to be presented in Australia.

The study, which was published as a working paper by the US National Bureau of Economic Research, surveyed American workers every month since the height of the Covid pandemic in May 2020.

Employers can keep wages low if they let their employees work from home, according to an American study to be presented in Australia.

The study, which was published as a working paper by the US National Bureau of Economic Research, surveyed American workers every month since the height of the Covid pandemic in May 2020.

Research found that about 20 per cent of working days will be completed from home post-pandemic, with that figure expected to rise in the coming years.

The study will be presented to the Committee for Sydney by researcher Jose Maria Barrero of the Instituto Tecnológico Autónomo de México on Thursday, where he will break down the results and show what working weeks will look like in the future.

Research from a team of US academics has found that both employers can 'limit wage growth' if they give their staff the option to work from home two or three days a week (pictured, stock image)

The results indicated staff would be willing to be paid a lower wage if they were allowed to work from home.

The majority of surveyed employees said they'd be open to taking a wage cut of 7 per cent, on average, if they had the option to WFH at least two or three days a week.

'When we ask people how much [they] value the ability to work from home a couple of days a week as a percentage of [their] current pay, typically they give you some number between 5 and 10 per cent,' Mr Barrero told The Sydney Morning Herald.

'They'd be willing to sacrifice up to 7 per cent of their income, more or less.'

The study concluded that workers had shown 'a willingness to accept sizable pay cuts' to work from home.

A separate study included in the same paper discovered similar results.

The desire to have more days at home was prevalent amongst all those surveyed regardless of age, gender, education, income or personal circumstances.

Researchers suggested that both employers and employees in the US are now coming to a point where they can agree on a work week comprising of days working from home and in the office.

While there was a 'big gap' between what employers and staff wanted, Mr Barrero said bosses have become more open' to a 'hybrid model' working week with time in the office and time at home.

He added that close to 40 per cent of surveyed companies had provided more opportunities for their workers to be at home to keep them 'happy' and to 'moderate wage growth pressures'.

Researchers suggested that employers and employees in the US are coming to a point where they can agree on a 'hybrid' work week comprising of days at home and in the office (pictured, stock image)

The research found that about 55 per cent of US workers will still need to be on-site full time in the future but 30 per cent of the population are able to work a 'hybrid week' and 15 per cent can work from home full-time.

The study surveyed 5000 to 10000 American employees each month since the height of the Covid pandemic in May 2020.

The study was conducted by Mr Barrero and academics from the University of Chicago, the Massachusetts Institute of Technology and Stanford University.

US study says employers can limit wage growth by letting staff work from home - Daily Mail
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