Research shows remote work is everywhere.
As an economist, I am neither professional nor inclined to find the bright side of anything. They did not call economics a “dismasing science.” So I tend to see the Covid-19 pandemic as a fatal, destructive and ultimately politicized event. look? But when I read an early draft summary of my colleague Alicia Munnell’s question on average retirement age, I couldn’t help but think of a small positivity. Faced with the recent stagnant average retirement age, perhaps adding remote work in more people’s lives may expand careers. Some research by other colleagues Laura Quinby and Siyan Liu shows that remote work can help people with disabilities work longer. So, in a recent issue summary, I wonder: What about those without disabilities?
You’ll see that unlike social distancing, outdoor dining, and healthy respect for vaccination, remote working is one of the things that are in a troubled pandemic. Actually, from Current population survey – It has asked about remote work since October 2022 – It recommends that remote work will not be done. Figure 1 shows that remote work has become increasingly common among workers who are nearing retirement over the past few years (defined here as 55+).
OK, so far away work seems to be here. But will it expand careers? On the one hand, some studies have shown that remote work can improve job satisfaction and reduce turnover. Therefore, this may also lead to longer careers. Remote work may also be part of a phased retirement plan, with workers gaining greater flexibility at the expense of salary and responsibilities. This trade-off can make the job more enjoyable and therefore endure for longer.
On the other hand, it is not clear how employers view remote work. While much of the evidence on the impact of remote work on productivity is positive, there is limited evidence that in some industries, this effect may be the opposite. And, regardless, employers have different views on remote work. Some people have a negative view of it. Remote work reduces the productivity of some workers or has perceived productivity, and remote work can enable some older workers to recruit retire faster.
The challenge to identifying these things is that remote workers are different in several dramatic ways. For example, remote workers are more profitable and are about twice as likely to have a bachelor’s degree from non-haired deletion workers. Relatedly, remote workers are less likely to work in physical industries such as agriculture or construction by about 25%, which may require an earlier retirement. Ignoring such factors may lead people to exaggerate the impact of remote working on expanding careers. Anyway, people who work remotely may work longer.
Therefore, I performed a regression analysis. It compares the retirement rates of remote workers with those of others with similar income, education and employment industries. Return also controls the individual’s family status, such as having a retired spouse or a child who still lives at home. After all, these may be the reasons for remote work and can also affect retirement decisions.
The results are encouraging, if not the broken earth. Compared with other similar workers, remote workers are about 1.4 percentage points less likely to retire. Given that about 9.0% of non-remote workers retire in any given year, this effect represents a 15% reduction in retirement rate. Given this decline, a later calculation suggests that remote workers may have worked nearly a year longer than similar non-remote workers.
Like every time I write one of these summary, I bring questions to this question. In particular, I wonder if this result reflects aspects of remote work that improves career life, or is it a simple fact that those who wish to choose these jobs longer? This question is important because it shows whether companies can expand their careers by providing more remote work than they are now.
Working remotely is one thing that is in trouble anyway. And, it seems that remote working also helps longer careers rather than hindering. Given that many Americans take longer to face jobs with low savings, the summary represents a small positive effect left in the pandemic.
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