Home Sweet Home: How Much Do Employees Value Remote Work?

We provide revealed-preference evidence on employee value for remote work and on the wage-setting strategies adopted by employers for in-person versus remote work. Using data on the job offers and selections of over 3,000 employees in the US tech sector, we estimate that, on average, individuals are willing to forgo 25 percent of their compensation for a job that is otherwise identical but offers hybrid or fully remote work instead of being in person. Puzzlingly, employers do not “compensate” for this positive amenity value: Companies offer similar wages for remote and in-person work at the same position and level.