The paper finds that while work-from-home (WFH) is highly valued (worth 8% of wages) and more accessible to higher earners—suggesting increased inequality—the lower wage growth for WFH workers offsets this. Consequently, there’s no overall change in compensation inequality but a substantial increase in total compensation.
We show that real wages decline from the Boomer generation onwards, over the life course. Further analysis shows that this is true for almost all groups, at all income levels, and conditional on observables.
Oxford Bulletin of Economics and Statistics We provide new evidence on the extent to which changes in inequality reflect changes in demographics. Recent increases have been in spite of favourable demographic conditions.