John Taylor, Professor of Economics at Stanford University and developer of the "Taylor Rule" for setting interest rates | Stanford University
John Taylor, Professor of Economics at Stanford University and developer of the "Taylor Rule" for setting interest rates | Stanford University
When Amazon recently instructed its employees to return to the office five days a week, it sparked discussions about the future of remote work. However, Stanford economist Nicholas Bloom believes this move will not significantly impact existing work-from-home policies. "I doubt it will change anything," he stated, expressing skepticism that other companies would follow suit.
Bloom and his colleague Steven Davis have been studying remote work since the pandemic began. Their research shows that remote work remains prevalent, with about one-third of the U.S. workforce working from home at least two days a week. They argue that employees are willing to accept lower pay in exchange for flexible work arrangements, particularly those with children.
Davis noted that the pandemic accelerated the acceptance of remote work by decades: “The pandemic removed the stigma of working from home and accelerated by a few decades where we would have ended up eventually.” The shift has had wide-ranging effects on cities, real estate markets, and even crime rates, as highlighted by Bloom: “Even burglars have been affected... You can’t break into homes when owners are sitting at the coffee table with their laptops.”
In 2022, Bloom and Davis organized a Remote Work Conference at Stanford to explore these changes further. The third annual conference is scheduled for October 9-11. Jose Maria Barrero, an assistant professor at Instituto Tecnológico Autónomo de México and former advisee of Bloom, collaborates closely with them on this research.
Bloom reflected on their early collaboration in 2011 over beers in Boston while discussing economic uncertainty. This partnership led to significant contributions in understanding remote work dynamics during COVID-19 lockdowns when they expanded their research focus.
Their ongoing surveys provide insights into how businesses and workers view remote work's future. This research has influenced Fortune 500 CEOs and directors seeking guidance on adapting to new workplace realities.
Davis concluded that hybrid work models benefit many companies: “The pandemic forced us to experiment with a very different way of working... And we’ve discovered...that not only does it work well in many settings, but also that we’re getting better at it.”
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