Recent research conducted by economists at MIT and UCLA, and circulated by the National Bureau of Economic Research, reveals that remote workers are less productive compared to office workers. The study focused on data entry workers in Chennai, India, who were randomly assigned to work either in an office or from home. The findings showed that those who worked from home were 18% less productive than their counterparts in the office. Interestingly, workers who preferred working from home were even less productive, with a productivity gap of 27% compared to office workers.
The researchers attribute this productivity difference to various factors. Workers who are less likely to prefer in-person work due to responsibilities such as childcare or eldercare tend to be more distracted while working from home, affecting their productivity. Additionally, the study suggests that differences in amenities between one's home and office, commuting challenges, house size, and access to childcare can also impact productivity levels.
While the study focused on data from Chennai, similar conclusions have been drawn from studies of IT and call center workers in the United States. It is important to note that the study primarily focused on jobs that are easily quantifiable and do not heavily rely on teamwork. Collaborative jobs may face more challenges when not conducted in the same physical space.
It is crucial to understand worker preferences and the constraints they face when considering optimal work arrangements. The disagreement between bosses and workers regarding remote work and office work has resulted in a significant loss in workforce productivity. Addressing constraints such as childcare and eldercare through policies and support systems can have substantial effects on aggregate productivity.
Investing in a social safety net, similar to countries like Sweden, Switzerland, or Spain, could be a potential solution. Policies that provide support in areas such as childcare and eldercare can free up workers to perform their jobs more effectively. In the United States, where the social safety net is lacking, greater investments in social support are needed. Improving access to paid family leave and affordable childcare can contribute to increased productivity and support workers, particularly women who often bear the burden of caregiving responsibilities.