Saturday, May 15, 2021
Home Lead Story Study: Working From Home Is Expensive

Study: Working From Home Is Expensive

The additional cost is easier to handle for higher-income individuals, but it places greater pressure on lower-income workers

The benefits of working from home — including skipping a long commute and having a better work-life balance — have been well documented, but employees are literally paying for the privilege, according to a study from the National Bureau of Economic Research.

“People will need to dedicate space to working from home,” said Christopher Stanton, a Marvin Bower Associate Professor at Harvard Business School who co-authored the study. “And, for many folks who are in smaller apartments and the like, before the pandemic, that wasn’t so realistic for long-term solutions, and so that means that you end up needing folks to upgrade to larger houses.”

Follow NewsGram on Facebook to stay updated.

The researchers analyzed data from the U.S. Census Bureau to reach their conclusions. They found that between 2013 and 2017, households with at least one teleworker spent on average more of their income on rent or a mortgage to pay for the extra room they need to work from home.

“A household that was spending about $1,000 a month on rent would be spending around $1,070 on rent. So, it’s about a 7% increase, on average, across the income distribution,” Stanton said.

Work At Home
Employees, on the other hand, can receive some assistance from their employers to pay some of the expenses. Pixabay

The researchers estimate that about 10% of people who worked in an office before the pandemic could permanently transition to working from home full time. A recent Upwork survey suggests that 36 million Americans will be working remotely by 2025 — an 87% increase over pre-pandemic levels and these workers could potentially take on the additional costs.

The added expense is easier for high-income households to bear but puts an increased burden on workers who earn less money.

“And so, for those households, you might have gotten an increase of 20-ish percent in housing expenses for households with remote workers compared to households with no remote workers,” Stanton said. “So that’s a pretty big chunk of expenditure for those households who were in the bottom half of the income distribution.”

Employees, however, might get a little help from their employers to cover some of those costs.

ALSO READ: What Effect Does Social Media Have on Our Lives?

“I would guess that firms are going to pick up part of this tab and will probably rebate some of their office space savings to workers to handle the increased housing expenses,” Stanton said.

Firms could be motivated by the recognition that having an adequate home office setup promotes higher productivity.

“I think having nonergonomic setups in small places will ultimately end up leading to fatigue and wear and tear and less productive employees in the long run,” Stanton said. “And so, I suspect that employers are going to want to make sure they have people with reasonably good work setups.” (VOA/KB)

STAY CONNECTED

19,509FansLike
362FollowersFollow
1,773FollowersFollow

Most Popular

Leveraging New Technologies Can Help Protect Families During Covid-19

Families across the world have been under tremendous pressure in the face of the ongoing crisis. Deep-seated gender inequalities and discrimination have ensured that...

Popularization Of Clear Teeth Aligners In India

Traditionally, the orthodontic procedure that seeks to "correct" crooked, overlapping, crowded, and gapped teeth has relied on metal braces. The image of a wired-teethed...

How To Achieve The Feathered Eyebrow Look In 5 Simple steps

The 2021 photo-ready brow look of the year is 'Feathered eyebrows'. Light and fluffy brows that enhance the natural face structure and at the...

Knowing About Mental Health Awareness Week

Mental Health Awareness Week runs from May 10-16 this year. During this pandemic, millions of us have experienced a mental health problem or seen...

Here’s How You Restore Collagen In Your Skin

Collagen is responsible for the irresistible quality, texture, and bounce found in baby skin. Collagen makes up 80 percent of skin and consequently is...

Here’s How You Can Manage Post Vaccine Symptoms From Home

A sore injection site, pain in the injected arm, mild fever, moderate fatigue, headaches, chills, and even diarrhea are symptoms commonly seen after administration...

BJP: Making Fun Of India’s Culture Is Shashi Tharoor’s Favourite Pastime

The BJP slammed former Union Minister and Congress MP Shashi Tharoor for questioning the progress the country made in recent years. The saffron party...

Why In India, Healthcare Delivery Is A Challenge

Recently, it was flashed in the media that people are struggling outside the hospitals to get a bed. Several celebrities have also conveyed that...

Recent Comments