This paper investigates the impact of remote work on firm-level productivity. To observe this trend, we develop a theoretical model to understand how an economy performs. We consider the economy as a collection of firms in an attempt to maximize profit. By observing a firms profit function, we are able to derive their productivity by maximizing a representative firm’s profit function. For simplicity purposes, this study treats labor as the only factor of production to focus solely on how changes in the number of remote workers impact productivity. We ultimately find that productivity increases when the number of remote workers increases relative to non-remote workers. This holds true under the stipulation that remote workers are paid higher wages than non-remote workers.
"The Effect of Remote Work on Firm Level Productivity,"
Gettysburg Economic Review: Vol. 12, Article 4.
Available at: https://cupola.gettysburg.edu/ger/vol12/iss1/4