Work from home and household behavior: Theoretical modelling and results for the United States

Alba, Salvatierra and Jorge, Velilla and Antonio, Gutiérrez-Lythgoe and Raquel, Ortega-Lapiedra (2025): Work from home and household behavior: Theoretical modelling and results for the United States.

Abstract

This article examines work from home (WFH) from a household perspective, using the collective framework, which accounts for intrahousehold bargaining, allowing decisions to be understood as interdependent between spouses. The analysis uses representative US data from the Panel Study of Income Dynamics for the period 2011-2021, which include detailed information on work hours, WFH, wages, and household demographics. The results reveal that WFH is a coordinated household decision, as spouses’ WFH decisions are positively correlated. Second, WFH is persistent for individuals, with those who had WFH in the past having a higher probability of being WFH in the future. Finally, demographic and economic factors matter little in determining spouses WFH decisions, although wages generally reduce the probability of WFH. These findings suggest that policies should treat the household as the unit of decision and focus on removing structural barriers to initial WFH adoption rather than targeting specific individuals.

• Item Type: MPRA Paper
• Language: English
• Keywords: Work from home; collective model; PSID data; gender
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C36 - Instrumental Variables (IV) Estimation; D - Microeconomics > D1 - Household Behavior and Family Economics > D13 - Household Production and Intrahousehold Allocation; J - Labor and Demographic Economics > J1 - Demographic Economics > J16 - Economics of Gender ; Non-labor Discrimination; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J22 - Time Allocation and Labor Supply

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