Wage returns from telework in Brazil: an analysis based on the concept of potential telework

In recent years, another form of performing work activities has been growing and attracting attention in Brazil, especially after the COVID-19 pandemic: telecommuting. Our study proposes to estimate the wage returns of potential telecommuting in Brazil, under the hypothesis that teleworkers earn more than those who do not work remotely. To achieve our goal, we used two data sources (PNADC/IBGE and ANATEL) to build a pooled data over the years 2018-2023. Since telecommuting can be correlated with the individual's innate ability, estimates by the 2SLS regression using variables instruments were adopted. Generally, the results showed that, for the sample analyzed, telecommuting individuals received, on average, 20.3% more in their usual weekly wages. We use COVID-19 as an instrumental variable – because of its exogeneity, which has never been exploredin literature. We also used the definition of Potential Telework occupations as a measure to telework.