Disclosing Work-From-Home Flexibility to Compete for Talent? Evidence from Job Postings

Abstract

This study examines what drives employers to disclose work-from-home (WFH) flexibility in their job postings (hereafter, WFH disclosure), and whether WFH disclosure serves as an effective tool to attract talent. Using a comprehensive sample of job postings for a set of US employers, we first document a gradual upward trend in WFH postings from 2017 to 2019, followed by a sharp increase in 2020 and 2021, precipitated by the pandemic. We find that employers are more likely to disclose WFH flexibility when facing greater labor market competition, with this effect more pronounced after the pandemic and when employee demand for workplace flexibility is likely to be higher. We further find that WFH disclosure is associated with a higher filling rate, consistent with such disclosures being effective in attracting new employees. These results represent the first large-sample archival evidence on employers’ disclosure of workplace flexibility to attract employees.

Keywords: disclosure, labor market competition, work-from-home, job postings

JEL Classification: D83; J23; J32