In 2019, only an estimated 6 percent of American workers primarily worked remotely.1 By February 2022, due in part to the COVID-19 pandemic, that figure had risen to 30 percent (see Figure 1). Even with some workers subsequently returning to the office, approximately 30 percent of all paid workdays were being done from home as of July 2022, up from about 5 percent in 2017–2018. According to a 2022 McKinsey and Company report, this translates to tens of millions of additional American workers now working from home all or most of the time.2 Yet public policy has not adapted to this new reality, to the detriment of millions of American workers.
Multiple surveys conducted during the COVID-19 pandemic show remote work is popular among employees. A February 2022 Pew Research Center report found that of those working remotely, 76 percent prefer the arrangement, even as concerns over COVID-19 wane and more offices reopen to in‐person work.3 Barrero, Bloom, and Davis (2022) reported reported that 54 percent of unemployed respondents preferred to find a job that offered remote work.4 The arrangement has proven particularly popular among parents, who can more easily juggle work and family obligations.5 In fact, Barrero et al. (2022) found that many workers appear willing to trade wage increases for remote work because they so value the amenity.6
This wage tradeoff also benefits employers. Barrero et al. (2022) also found found roughly 40 percent of businesses, including more than...
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