Adam Gill
adam-gill.bsky.social
Adam Gill
@adam-gill.bsky.social
PhD Candidate in Economics at Uppsala University

https://sites.google.com/view/adam-gill/
6/ Overall, we find that trust is a key driver of regional differences in WFH and it is important for sustaining WFH at firm and aggregate levels.

We also find interesting heterogeneity by WFH type and occupation potential.

See the paper for more detail: docs.iza.org/dp17468.pdf
docs.iza.org
December 6, 2024 at 2:59 PM
5/ In 2019, high-trust areas had significantly more WFH than low-trust ones, even with individual and region controls. By 2021, trust effects grew stronger.

No evidence of low-trust areas “catching up”—trust reinforced WFH, especially in mid-remote roles and for managers.
December 6, 2024 at 2:59 PM
4/ We use trust data from the European Social Survey aggregated at country, region, and region-by-industry levels, and WFH data from the European Labor Force Surveys.

Our key trust measure—managers believe “people are fair”— predicts WFH better than institutional trust metrics.
December 6, 2024 at 2:59 PM
3/ In a stylized model, we show how managerial trust shapes WFH when firms weigh wage savings vs. productivity loss from shirking.

Prediction: Firms should only offer WFH in settings where there is high aggregate trust, since unilateral deviation will only attract shirkers.
December 6, 2024 at 2:59 PM
2/ WFH is rising but it is challenging for managers due to loss of oversight, making trust essential for WFH.

The data shows that higher managerial trust (belief that “most people are fair”) links to higher WFH rates pre-pandemic (2019) and greater WFH growth (2019–2021).
December 6, 2024 at 2:59 PM
1/ TL;DR:

Managerial trust strongly correlates with WFH. Places where managers believe people are trustworthy had higher WFH rates pre- and mid-pandemic—even when controlling for occupations, demographics, digital skills, & GDP.

More below 👇
December 6, 2024 at 2:59 PM