Suppose that all employers in the software industry allow programmers and web designers to work from home.

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Suppose that all employers in the software industry allow programmers and web designers to work from home. This appeals to working parents and those with other responsibilities as their other tasks can be accomplished at less cost than if they had to commute to work. Unfortunately, after some time, employers decide that they can increase the productivity of their programmers and designers by having everyone work together in the company offices. That is, the employers in the industry believe that both creativity and a more positive company culture will be stimulated among workers if the work-from-home policy is discontinued. Explain the likely labor market effects of this new policy on the software industry.

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Principles Of Economics

ISBN: 9781292294698

13th Global Edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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