Smart Working: Work Flexibility Without Constraints

Does removing constraints on the time and place of work benefit the utility of workers and firms? We design a randomized experiment of a sample of workers in a large Italian company; workers are randomly divided into a treated group that engages in flexible place and time of work (which we call “smart working”) one day per week for nine months and a control group that continues to work traditionally. By comparing the treated and control groups, we find causal evidence that the flexibility of smart working increases the productivity of workers. We estimate a decrease of one day of leave on average per month, and we exclude a significant decline in objective productivity in any month. We also find sizeable…