Audit Study on the Returns to Remote Work

Last registered on September 02, 2024

Pre-Trial

Trial Information

General Information

Title
Audit Study on the Returns to Remote Work
RCT ID
AEARCTR-0012465
Initial registration date
March 24, 2024

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
April 02, 2024, 10:45 AM EDT

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Last updated
September 02, 2024, 1:54 PM EDT

Last updated is the most recent time when changes to the trial's registration were published.

Locations

Primary Investigator

Affiliation
University of Southern California

Other Primary Investigator(s)

Additional Trial Information

Status
In development
Start date
2024-01-01
End date
2026-01-01
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
This study implements a randomized correspondence study to estimate the callback rate and wage differential for remote work by sex, race, education, experience, and geography. To identify causal estimates of the returns (positive or negative) to remote workers, I create fictitious worker profiles on an online job board where the demographics, qualifications, and preferences for remote work of each worker are randomly selected. I plan to test whether job seekers who prefer working from home receive fewer interviews and are paid less on average. In addition, I am interested in how the returns to working from home varies by worker and firm characteristics, particularly whether remote work creates job opportunities for women and for workers in less populated areas.
External Link(s)

Registration Citation

Citation
Quach, Simon. 2024. "Audit Study on the Returns to Remote Work." AEA RCT Registry. September 02. https://doi.org/10.1257/rct.12465-2.0
Experimental Details

Interventions

Intervention(s)
Intervention (Hidden)
I create fictitious worker profiles on an online job board where employers browse job-seekers' characteristics and decide whether or not to offer interview invitations. The unique features of this website are 1) it is normal for workers to list their preferences for remote work and their salary expectations, 2) the website focuses primarily on tech jobs, and 3) firms do not post vacancies and workers do not apply to firms; instead, firms apply to workers. I randomly assign each worker's race, gender, education, job experience, skills, expected salary, and job preferences. I will examine how the quantity and quality of interview requests vary across these groups to determine the extent to which the market discounts remote workers relative to in-office workers, and how that wage differential varies by worker and firm characteristics.
Intervention Start Date
2024-04-01
Intervention End Date
2026-01-01

Primary Outcomes

Primary Outcomes (end points)
The key outcomes are 1) the total number of interview requests received by each candidate profile and 2) the salary offered in the callbacks.

I am also interested in the composition of firms that offer the interviews. Specifically, I will count the number of interviews from large vs. small firms, local vs. out-of-state firms, high paying vs. low paying firms, firms with remote programs vs. those without, FAANG vs. non-FAANG, and firms with large vs. small share of employees who are women.

To reframe the difference in callback rates in dollar values, I also measure the amount by which remote candidates need to reduce their salary expectations in order to receive the same number of interviews as in-office candidates.
Primary Outcomes (explanation)
To measure the "wage differential" associated with remote work, I apply an Oaxaca-Blinder type decomposition. I jointly estimate the causal impacts of asking for a higher salary and asking for a remote job on the number of interview requests. The ratio of these two estimates will provide a measure of how much expected wages need to fall by for remote workers to receive the same number of interviews as in-office workers. Similar to an Oaxaca-Blinder decomposition, I will test the robustness of the estimation to allowing for differences in slopes between remote and non-remote workers.

Secondary Outcomes

Secondary Outcomes (end points)
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
Will be made public when the trial is complete.
Experimental Design Details
The purpose of this experiment is to study the returns to remote work, and how these returns vary by workers' characteristics. My experiment creates fictitious profiles on an online job board for software engineers and measures the outcomes of these accounts. Since each profile will have randomized characteristics, the experiment allows me to estimate the causal impact of each characteristic.

In particular, I am interested in several questions:
1) Do remote candidates receive more or fewer interviews?
2) Do candidates who ask for higher salaries receive fewer interviews?
3) By how much do remote candidates need to reduce their salary expectations to have the same number of interviews?
4) How do the returns to remote work differ for workers in cities relative to those in small towns? My hypothesis is that remote work is discounted relative to in-office work in places where people can commute, but for workers located in places with few tech jobs, remote work actually creates more opportunities.
5) How do the returns to remote work differ by time zone relative to San Francisco where the majority of employers are located? Broadly, I want to test whether the cost of remote work is due to geographical coordination or temporal coordination.
6) How do the returns to remote work differ by workers' experience, education, and gender? In particular, I want to test the hypothesis that remote work makes experienced workers more productive, but has a negative impact on inexperienced workers.

The experiment proceeds in three steps:

Step 1: I scrape information from 1000 real job candidates on the online job board. I restrict the scraped data to only candidates located in the United States.

Step 2: Using the scraped data, I create an Excel file of fictitious profiles with randomized worker characteristics as follows:

1) Remote preferences: 40% remote only, 40% in-office, and 20% hybrid (i.e. 1-2 days in office)
2) Gender: 50% men, 50% women
3) Race: 33% white, 33% black, 33% Asian.
4) Name: Given the race and gender, I randomly pick the surname from the Decennial Census' 1000 most common surnames. I also pick the first name from the Decennial Census' 1000 most common names, but only condition on gender.
5) Email address: Applicants have a Gmail email address we created based on their first name, last name, and a random string of integers.
6) Profile picture: Given the gender, race, name, and beauty, I use ChatGPT to generate a fictitious profile picture.

7) Location: Using the US Census' list of all cities with population above 50,000, I randomly allocate the profiles to be 33% San Francisco, 33% cities with at least 100,000 people, 33% small towns with less than 100,000 people. Within each group, the probability that a city is selected is its relative share of total population in the group.

8) Undergrad + Masters' education: 50% of the profiles will have a Master's degree. 50% Ivy+, and 50% non-Ivy+. Individuals with a Masters' either went to an Ivy+ school for both degrees, or a non-Ivy+ school for both degrees. All degrees are for computer science. The name of the college will be randomly drawn from all colleges in NCES data that offer computer science as a major. Within a Ivy/non-Ivy group, the probability that a college is drawn depends on its relative share of all graduates in computer science.
9) Year of graduation: Uniformly distributed from the 2008 to 2020.

10) Years of total work experience: Equals 2024 minus year of last graduation. All candidates have no unemployment spells.
11) Experience at each job: 3 numbers are randomly drawn from 0.25 to 0.75. The ratio of each number to the sum of the numbers is the share of total work experience at each job.
12) Job titles: On the platform, I randomly drawn from "Frontend", "Backend", and "Full Stack" for each position. For the specific resume title, I randomly choose from titles in the scraped data.
13) Name + location of employers: All jobs are randomly drawn from online job postings data of employers that hire software engineers. 50% of job candidates are randomly assigned to have at least 1 FAANG+ job in their work history.
14) Job description: I input a random job description from the scraped data into ChatGPT and ask it to rephrase the wording.
15) Skills: Randomly draw 5 programming languages from the scraped data according to the frequency that they appear in the data.

16) Number of people currently managing: This is a categorical variable when creating a profile. I randomize 33% None, 33% 1-5 people, and 33% 11-20 people.
17) Hours: All profiles work 8 hours per day, but I randomize the start time of the hours from 8am PT to 12pm PT (20% probability each hour), independent of the profile's actual timezone.
18) Salary expectations: Given the above information, the online job board recommends a salary for candidates. I randomize with 20% probability each, whether a profile's salary expectation {equals, -10%, -5%, +5%, or +10%} relative to the recommended salary.

Step 3: After creating the fictitious profiles, I will upload them on the online job board. To avoid detection by the platform, I will only create 10-20 new candidates each day. Each profile will remain active on the website for 2 weeks. During the 2 weeks, I will record the number of interviews each candidate received and the names of the employers that made an interview request. At the end of the two weeks, I will reactivate the profile, but switch the preferences of the candidate from remote to in-office, and vice versa.
Randomization Method
All resume characteristics will be randomly assigned by computer.
Randomization Unit
Individual profile
Was the treatment clustered?
No

Experiment Characteristics

Sample size: planned number of clusters
~10000 unique profiles, each active twice
Sample size: planned number of observations
~10000 unique profiles
Sample size (or number of clusters) by treatment arms
~40% remote, 40% in-office, and 20% hybrid. Results are clustered by individual profile.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Assumptions: 1) Mean number of interviews per profile is 4.5. This is drawn from a previous report by the web platform. 2) From previous audit studies, the mean callback rate from sending a resume to an employer is 12.5%. 3) Inferring from previous audit studies, the standard deviation in callback rates is about 0.15. 4) Assume that (Number of interviews) = (Number of firms that view profile) * callback rate Input (1) and (2) into (4) implies 4.5=0.125 * Number of firms So the number of firms that view each profile is 36. For the power calculation, I need the standard deviation in the number of interviews per profile. SD(Interviews)=SD(NumFirms*Callback) = 36*SD(Callback) = 5.4 Given the mean and standard deviation, the minimum detectable effect on "number of interviews received" is a difference of 0.353 interviews with a sample of 10,000 profiles.
Supporting Documents and Materials

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IRB

Institutional Review Boards (IRBs)

IRB Name
USC Institutional Review Board
IRB Approval Date
2023-09-18
IRB Approval Number
UP-23-00905

Post-Trial

Post Trial Information

Study Withdrawal

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Intervention

Is the intervention completed?
No
Data Collection Complete
Data Publication

Data Publication

Is public data available?
No

Program Files

Program Files
Reports, Papers & Other Materials

Relevant Paper(s)

Reports & Other Materials