Remote Work in Germany – Workers in jobs conducive to remote work have begun living farther from their workplaces

A new IZA discussion paper by IAB researchers Sena Coskun, Wolfgang Dauth, Hermann Gartner, Michael Stops and Enzo Weber examines how the rise of remote work during the COVID-19 pandemic is impacting career choices and where people live.

The authors analyze large datasets on employment history in Germany alongside a new indicator for remote work potential across different occupations. Their findings reveal a clear trend: since the pandemic, workers in jobs conducive to remote work have begun living farther from their workplaces.

The association of working-from-home potential and work-home distance has increased significantly since 2021 as compared to a stable pattern before. This shift is particularly pronounced for new hires, suggesting a deliberate choice towards remote jobs with greater physical distance from the office.

The research also indicates that this trend is most significant in large cities, suggesting that remote work offers an escape from tight housing markets. Interestingly, the study doesn’t find a difference in how this trend affects men versus women.

Source: Working from Home Increases Work-Home Distances | IZA – Institute of Labor Economics