Does Working from Home Increase Job Change?

『検証・コロナ期日本の働き方-意識・行動変化と雇用政策の課題(樋口美雄・労働政策研究研修機構編)』, 慶応義塾大学出版会, 2023. [Japanese] [Book information (Japanese)]

Joint with Fumio Ohtake (Osaka University)

Abstract

This research uses a survey conducted by JILPT to examine the impact of working from home (WFH) on intentions to change jobs and job search activities, as well as gender differences in this impact. Based on a naive labor mobility model, we set out our hypotheses. First, WFH affects job change intentions through changes in the expected utility of turnover and the utility of current jobs. Second, WFH positively affects job change intentions through reduced search costs, such as less supervision by coworkers and supervisors. The analysis reveals that WFH does not affect the job change intentions of men and women but promotes job search activity among men. Therefore, we can interpret that WFH reduces job search costs. However, it cannot be said that the decrease in search costs due to telework is a good thing; it will depend on increasing workers’ welfare due to job changes and decreasing productivity due to shirking. If WFH allows workers to adjust their schedules more flexibly, and if they do not slack off and optimally allocate their time between current jobs and job search activities, the decrease in search costs may improve social welfare since decreasing search costs improves workers’ welfare only. Therefore, reducing search costs due to WFH will improve social efficiency.