Discussion Paper

The Power of Proximity: How Working beside Colleagues Affects Training and Productivity

Abstract: Firms remain divided about the value of the office for “office” workers. Some firms think that their employees are more productive when working from home. Others believe that the office is a key place for investing in workers’ skills. In this post, which is based on a recent working paper, we examine whether both sides could be right: Could working in the office facilitate investments in workers’ skills for tomorrow that diminish productivity today?

Keywords: work from home; remote work; on-the-job training; peer effects; mentoring; gender;

JEL Classification: J0; J24;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2024-01-18

Number: 20240118