Panel 7
Remote Work, Organizational Productivity and Immigrant Earnings

Chair: Derek Messacar
Associate Professor of Economics at Memorial University of Newfoundland and Senior Research Analyst at Statistics Canada

Benoit Dostie
Professor, HEC Montréal, Directeur académique, CIQSS
“Telework and Productivity: Evidence from a Survey of Quebec Government Employees”
Abstract:
This research surveyed 71,420 Quebec public service employees (April 2024) on telework impacts. Results show broad satisfaction, with 62% reporting higher productivity remotely versus 35% seeing no difference. Managers (n=2,690) held mixed views: 58% rated team efficiency as equal across settings, while 27% favored telework, though performance evaluation was deemed slightly easier onsite.
Preferences for hybrid work diverged—63% of employees wanted 4-5 telework days weekly, while managers leaned toward 3 days (30.2%). Key benefits included reduced commuting (64%) and improved focus (65%), but challenges like isolation (44%) and weakened team cohesion (37%) emerged. The findings highlight telework’s popularity for work-life balance but underscore tensions in implementation, particularly between staff desires and managerial oversight needs.

Xinfei Liu
Associate Professor of Economics, University of Alberta
“Earnings Assimilation of Immigrants in Canada: 1971 – 2021”
Abstract:
his study analyzes immigrant earnings assimilation in Canada using census (1971–2021) and Labour Force Survey (2006–2021) data, focusing on employed individuals aged 25–55. While immigrants consistently earn less than native-born Canadians at entry, the gap has narrowed over time for most cohorts. However, significant disparities persist, especially for recent arrivals, women, and older immigrants, with incomplete convergence even after a decade. Earnings growth trajectories vary substantially by cohort, gender, and age at arrival, with sample selection strongly influencing observed patterns.
The study also examines labor market integration through discrete choice models, revealing immigrants are less likely to hold high-income, full-time jobs and more likely to work in low-income sectors. Even after 10 years, many remain underrepresented in stable, high-paying roles, with notable gender and cohort differences in occupational choices. These findings highlight the heterogeneous nature of immigrant assimilation, driven by cohort-specific factors, institutional barriers, and regional labor market dynamics.

Emin Gahramanov
Professor of Economics, School of Business Administration, American University of Sharjah (Virtual)
“Optimal Level of Remote Work and Employee Wages: Evidence from a Representative Canadian Labour Force Survey”
Abstract:
In Canada, hybrid work has significantly influenced product innovation, management complexity, talent retention, and operational costs, among other factors (Fang 2024). This study theoretically examines the trade-offs between remote work’s network externalities and the loss of agglomeration benefits, alongside cost savings due to remote work versus increased monitoring risks. We utilize Statistics Canada’s Labour Force Survey and remote work anticipation data (2023–2024Q1), and observe an inverted U-shaped relationship: a 1% rise in remote work increases wages by 4.818% initially, but this effect reverses beyond 10.78%. Instrumental variable (IV) analysis confirms causality with steeper thresholds. Industry heterogeneity is pronounced: Finance and Insurance peak at 7.83%, while Agriculture and Manufacturing decline at 0.91% and 1.96%, respectively. U-shaped sectors like Transportation (threshold=6.25%) highlight technology-driven efficiency rebounds. Mechanism tests further show stronger wage gains for parents of school-aged children, long-tenured employees, and full-time workers, while gender-dominated industries exhibit significant rigidity.

Graham King
MA Economic Geography at UBC and Research Fellow at Stephen Jarislowsky Chair
“Determinants and Effects of Remote Work Arrangements:
Evidence from an Employer Survey”
Abstract:
Remote work arrangements are powerful examples of an organization’s capability for using digital technology. This study uses data from a representative survey of Atlantic Canadian employers to assess three phenomena: how remote work changed over the course of the recent COVID-19 pandemic; the determinants of such changes; and the effects of such changes on business outcomes. Our results indicate that urban firms, technologically advanced firms in certain highly skilled industries, and firms that provided more flexibility to do remote work, were most likely to increase remote work practices during the pandemic. For the average firm, an increase in the share of remote work was associated with increased organizational productivity, employee performance, and new product/service innovation. The main downside was increased management complexity. Variation was seen along industry and provincial lines.
