Remote wages more equalized than local wages across countries
16:58
The U.S. economists at VoxEU estimate wages for remote work are more equal than full-time jobs. They are strongly correlated with the GDP per capita in a given location: a 1 percent higher GDP per capita where workers live translates into wages. This is true for countries and individual states in the U.S.
There is also a high pass-through from the exchange rate to local-currency remote wages in countries other than the US.
"Our offshorability measure highlights whether a job is performed remotely is an imperfect proxy for whether a job can be easily off-shored. Future work on measuring offshorability should consider this distinction," the scientists concluded.
