Alessia Matano (Sapienza University of Rome)
Giuseppe Croce
The adoption of remote work has become increasingly important in recent years, yet its distribution remains uneven across regions and countries. This study examines the determinants of remote work in 26 European countries from 2016 to 2023, using European Labour Force Survey data. We analyze the role of regional characteristics such as population density, industrial composition, demand-side factors, and cultural aspects in shaping remote work patterns before and after the pandemic. Our findings show that, overall, regional density was a key factor before the pandemic, but its influence diminished post-pandemic, with industry structure becoming more important. Institutional trust also plays a significant role in promoting remote work. However, we find strong cross-country heterogeneity in these dynamics. In the Northern cluster (Northern and Western Europe), multiple factors, including density, commuting patterns, economic structure, and institutional trust, have a positive impact on remote work adoption. In contrast, in the Southern cluster (Southern, Central, and Baltic Europe, as well as the Islands), only industry composition and, to some extent, institutional trust matter. These differences underscore the role of regional economic and cultural characteristics in shaping remote work adoption, emphasizing the need for policy approaches tailored to specific country clusters.