📄 Full manuscript: bit.ly/41jHW8P

Looking forward to feedback and discussions! #RemoteWork #Incentives #PerformancePay #Monitoring #Skills #Incentives #Economics

6/ 🔎 Our findings suggest that pandemic policies and regulations influenced the adoption and persistence of remote work and performance pay + implications for workers' health could be substantial.

5/ We test such a prediction by exploiting the temporal variation in legislation in New York State, using a Difference-in-Differences approach and find strong and robust support

4/ Remote work is persistent: post-pandemic, the firm always sticks to remote work for workers whose skills are so high that performance pay is the best option and switches to office only for less-skilled workers if remote monitoring is not sufficiently effective

3/ Performance pay becomes more popular when the worker goes remote with the pandemic because remote monitoring is less effective than office monitoring

2/ We propose a theory, based on moral hazard and information asymmetries, consistent with such evidence. Performance pay is skill-biased as, under risk aversion, the incentive-compatible premium falls with worker’s skills