Quora now also a remote-first company.

@adamdangelo describes four reasons (discussed below). Sadly, all are largely the result of bad public policy.

Conclusion: Silicon Valley (and US) are losing talent because of bad local + national policies. https://www.quora.com/q/quora/Remote-First-at-Quora

1. Commuting costs -- Probably the hardest to change, but Bay Area public transit is notoriously bad. Also, if housing were more affordable + plentiful, people would have to commute less (fewer hours stuck on 101 --> more CA taxes)

2. Ability to focus in open offices -- Having open office layout is a firm choice (though depends to some extent on overall sqft available, which is a zoning decision).

Yes, it's fashionable, but these trends could easily be reversed (in particular in a post-pandemic world)

3. Housing crisis in Bay Area (too expensive) -- This is clearly a local zoning issue ( @arpitrage), and should be changed.

I actually think this is essentially the same reason as "long commute" -- Bay Area needs more housing!

4. Immigration Policy. Particularly relevant this week. Much has been written on the huge negative economic effects of the recent EO (look at @PMoserEcon work)

https://twitter.com/PMoserEcon/status/1272159276123820034?s=20

https://twitter.com/DMSabatini/status/1273035542981160960?s=20

https://twitter.com/florian_krammer/status/1274760472307421187?s=20

One might say that this move to "remote first" allows US companies to continue to hire the best people despite the inefficient constraints imposed by local and national policies.

But I don't think it's so easy: First, many jobs cannot be done remotely (eg in science labs)

Second, while this may benefit US companies, it moves substantial income tax-base abroad.

Also, the chance that the next jobs these workers take are again with a US company are much lower if they are based in Berlin or Bangalore.

Third: I am convinced that, over time, there will be substantial productivity losses from loss of personal interactions.

Companies don't feel that yet, because they are living off a long-built stock of social capital. https://twitter.com/stroebel_econ/status/1264434614476644352?s=20

Also, people compensate by working much longer hours, which is not sustainable. https://www.bloomberg.com/news/articles/2020-04-23/working-from-home-in-covid-era-means-three-more-hours-on-the-job

My sense also is that people generally value the personal interactions with colleagues, who are often a source of friends (I certainly am thankful that @NYUStern Finance has a culture of coming into the office).

But I suspect on this, some people have difference preferences.

So, while the pandemic might have been the precipitating event, none of the reasons companies give for moving "remote first" are actually pandemic related.

They are all just adaptation to bad local and national policies.

On the flip-side, these policies can be changed, and maybe the increase in competition will force places like NYC to pick up trash and make more green spaces available, and the Bay Area to build more housing.

Also, shout-out to @p_ganong and Danny Shoag, whose research is cited in the note.