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Remote Work, Wage Growth, and Promotions

Sabrina Wulff Pabilonia and Victoria Vernon

Abstract

Using longitudinal data from the Current Population Survey, we examine how post-pandemic work-from-home arrangements relate to wage growth and promotions, with a focus on differences by sex and parental status. Our analysis shows that on average, remote and hybrid work are associated with increased wage growth for those in the top 75% of the wage distribution. Among mothers, hybrid work is associated with increased wage growth only among those in the top wage quartile. We find that the relationship between work-from-home arrangements and promotions depends on parental status, type of work-from-home arrangement, and a worker’s position on the job ladder.