Telework and establishment location: employee influence and regional heterogeneity

Telework could alter the spatial distributions of economic and social activities as work moves away from central places. Decisions regarding telework from home are made in establishments. Employee influence in establishments, as well as regional structures at the establishment location may interact to influence such decisions. Using the SOEP-LEE2 data for Germany findings show that decisions by establishments to use telework from home are influenced more by employees in establishment locations with stronger local competence structures and digital infrastructure, e.g., more science, technology, engineering and mathematics (STEM) and knowledge-intensive business services (KIBS) jobs and better fixed link broadband coverage. This reflects the incentives of employers and employees when negotiating telework arrangements within establishments.