Job performance when workers work in locations they prefer

We estimate the relationship between working in a preferred job location and worker productivity. Using a difference-in-differences approach and data from the U.S. Marine Corps, we find that subsequent job performance improves among top performers assigned to their preferred job locations relative to average and bottom performers. In addition, the job performance of those whose preferred locations enhance firm-specific human capital also increases. Our findings have implications that extend beyond the military case and provide useful insights into post-pandemic workplaces offering more flexibility for location-based preferences.

Automated summary

This study examines the relationship between working in a preferred job location and worker productivity using data from the U.S. Marine Corps. The findings show that high performers assigned to their preferred job locations experience improved subsequent job performance, compared to average and low performers. Additionally, workers whose preferred locations enhance the firm-specific human capital also exhibit increased job performance. These findings have implications for post-pandemic workplaces that offer more flexibility in location-based preferences.