The COVID-19 pandemic has fundamentally transformed the way we work, with remote work becoming the new norm. Economists have recognized that this shift is here to stay, and their research is shedding light on the profound implications it holds for businesses, cities, and society as a whole. From boosting productivity to reducing crime rates, the remote work revolution is rewriting the playbook on the future of work.
Debunking the Myths
At the onset of the pandemic, some skeptics raised doubts as to whether remote work would be feasible and sustainable. But they have been consistently disproved in the research of Stanford economists Nicholas Bloom and Steven Davis.
Research demonstrates that with effective management, these hybrid schedules are just as productive for employees working the same tasks in office. Indeed, their paper suggests it is not the bed, the fridge and the telly after all which are killing remote work. By contrast, the pandemic has “shattered the stigma of WFH (working from home)” and expedited an existing trend.
The contributions of Bloom and Davis have been considerable, as they were contacted by CEOs of Fortune 500 companies and corporate boards alike for advice on managing the nuances of remote operations. As a result, their research has been instrumental in debunking the idea that remote work would be just another transient trend, representing an important cornerstone for businesses and policy makers to understand some of the lasting effects of this change.
How Remote Work Affects The Ripple
Remote work is more than about individual productivity or employee preferences. There are implications for cities, real estate markets and even crime rates.
Cities as big as San Francisco and Washington, D.C., are facing a loss of revenue because office workers have stayed home and services like takeout lunches are go-to-the-restaurant. The call for office space and homes close to city centers is also dropping, so commercial and residential real estate markets as well.
However, in addition to the financial effects, Bloom also explains that his research has apparently changed burglar behavior: burglars are finding it a bit more difficult to break into homes when people are working from home in their living rooms. One result of the remote work revolution that few people anticipated is how our societies are slowly being restructured in unexpected ways.
The Future of Work is Hybrid
Bloom and Davis are convinced despite the occasional headlines about employers mandating back-to-the-office returns that hybrid work is here to stay. According to their research, workers — particularly those with children, are prepared to take a pay cut in return for the chance to work two or three days a week from home.
The duo, who collaborate with Jose Maria Barrero, are among the very first to study remote work since the beginning of the pandemic. To investigate the implications of this broad transformation — and to highlight just how much research has left to discover — they have hosted annual meetings at Stanford that help illustrate the areas that will likely benefit from more in-depth study.
As Bloom continues, “We are at the end of the beginning of remote work revolution,” and his, Davis’, and Barrero’s economist research has a key role to play in that transition.
