Beyond the “Comforts” of work from home: Child health and the female wage penalty

Abstract

Using data on American women and the health status of their children, this paper provides estimates of the effect of remote work on female wages. A temporary child health shock, which does not affect a woman's labor market outcomes beyond inducing her to work at home, is used as an instrument. Instrumental variable estimates indicate a substantial wage penalty that is more likely attributed to women's choices or assignments of less promotable job tasks when working from home. The findings are valuable in assessing the costs associated with remote flexibility, especially when children are required to stay at home during episodes of illness.