Work from Home or Work from the Office
41 Pages Posted: 7 Jun 2024
Date Written: June 06, 2024
Abstract
Recent data indicates that twenty eight percent of paid workdays in the U.S. are work from home. Workers in numerous occupations have come to expect the option to work from home some days of the week. Many organizations are attempting to implement flexible work plans which allow this alternative. This paper is an initial attempt to formalize the economic costs and benefits of mixing a worker's time between the office and home. We analyze first best solution where efforts are observable and compare this to second best solutions where all efforts are unobservable or where effort is unobservable only at home.
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