TY  - RPRT
        AU  - Barrero, José María
AU  - Bloom, Nicholas
AU  - Davis, Steven J.
AU  - Meyer, Brent
AU  - Mihaylov, Emil
        TI  - The Shift to Remote Work Lessens Wage-Growth Pressures
        PY  - 2022/Jun/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 15385
        UR  - https://www.iza.org/index.php/publications/dp15385
        AB  - The recent shift to remote work raised the amenity value of employment. As compensation adjusts to share the amenity-value gains with employers, wage-growth pressures moderate. We find empirical support for this mechanism in the wage-setting behavior of U.S. employers, and we develop novel survey data to quantify its force. Our data imply a cumulative wage-growth moderation of 2.0 percentage points over two years. This moderation offsets more than half the real-wage catchup effect that Blanchard (2022) highlights in his analysis of near- term inflation pressures. The amenity-values gains associated with the recent rise of remote work also lower labor's share of national income by 1.1 percentage points. In addition, the "unexpected compression" of wages since early 2020 (Autor and Dube, 2022) is partly explained by the same amenity-value effect, which operates differentially across the earnings distribution.
        KW  - inflation dynamics
KW  - wage growth
KW  - amenity value
KW  - remote work
KW  - recession risk
KW  - business expectations
KW  - labor’s share of national income
KW  - wage compression
        ER  -