Abstract

Following the introduction of remote work during the 2020 Covid-19 pandemic, discussion has arisen surrounding the optimal work model that maximizes personal well-being and firm productivity. With the two factors being interrelated, the hypotheses formulated are as follows: Remote work decreases the overall productivity of the firm, and Hybrid work increases the overall productivity of the firm. These hypotheses were drawn from aspects within the Principal-Agent theory and the concept of shirking. A series of scholarly research pieces were reviewed to provide a better understanding of the implications of work arrangements. To test these hypotheses, a series of regression estimations were conducted accounting for industry-fixed effects, time-specific effects, and heterogeneity regarding industry capability to participate in remote or hybrid work. Through the multiple regression analysis, we find that increases in industry remote work participation decrease indexed productivity for industries with high capabilities and industries with low capabilities to work remotely. The analysis also showed that increases in industry participation in hybrid work decreases indexed productivity for industries with high capabilities and industries with low capabilities to work hybrid. However, due to the limited number of observations, it was deemed necessary to analyze the raw data rather than the regression results. From this, we found that remote work decreases the indexed productivity within industries, and hybrid work increases the overall productivity within industries. This research provides firms with the knowledge necessary to make work arrangement decisions to maximize productivity and personal well-being, therefore maximizing operational efficiency.

Advisor

Davison, Colin

Department

Business Economics

Disciplines

Business Analytics | Business Intelligence

Keywords

Work Arrangements, Remote Work, Hybrid Work, Productivity

Publication Date

2025

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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