Mobility Restrictions and the Substitution between On-Site and Remote Work: Empirical Evidence from a European Online Labour Market

35 Pages Posted: 4 Nov 2021

See all articles by Frank Mueller-Langer

Frank Mueller-Langer

University of the Bundeswehr Munich; Max Planck Institute for Innovation and Competition; European Commission, Joint Research Center

Estrella Gomez-Herrera

Joint Research Center of the European Commission; University of Balearic Islands

Date Written: September 21, 2021

Abstract

Intensified by the COVID-19 pandemic, online labour markets are at the core of the economic and policy debate about the future of work and the conditions under which we work online. We analyse the effects of an increase in the cost of on-site work induced by COVID-19-related mobility restrictions on the substitution between on-site and remote job postings and between on-site and remote hires. We benefit from the fact that the implementation of stay-at-home requirements varies by country, time and level. We use unique company data from a large European online labour market. We provide empirical evidence for a positive effect of stay-at-home restrictions on job postings and hires of remote work relative to on-site work. Overall, our results suggest that employers are substituting remote employment for on-site employment, while there is no substantial change in overall employment.

Keywords: Remote work, on-site work, stay-at-home requirements, cost of working on-site, COVID-19, online labour markets

JEL Classification: D40, J20, J40

Suggested Citation

Mueller-Langer, Frank and Gomez-Herrera, Estrella, Mobility Restrictions and the Substitution between On-Site and Remote Work: Empirical Evidence from a European Online Labour Market (September 21, 2021). Forthcoming in: Information Economics and Policy, Max Planck Institute for Innovation & Competition Research Paper No. 21-26, Available at SSRN: https://ssrn.com/abstract=3954846

Frank Mueller-Langer (Contact Author)

University of the Bundeswehr Munich ( email )

Munich
Germany

Max Planck Institute for Innovation and Competition ( email )

Munich
Germany

European Commission, Joint Research Center

Seville
Spain

Estrella Gomez-Herrera

Joint Research Center of the European Commission ( email )

Via E. Fermi 2749
1049
Belgium

University of Balearic Islands ( email )

Crta Valldemossa km. 7,5
Palma de Mallorca, Islas Baleares / Illes Balears 07003
Spain

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