LPS Demand Changes London

Remote Work and Compensation Inequality

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.

Gianni De Fraja, Jesse Matheson, Paul Mizen, James Rockey, Shivani Taneja, Gregory Thwaites