The effect of reducing wages of remote workers on society. A preliminary assessment




Average wages, COVID-19 pandemic, Income inequality, Remote work


Remote work has represented ‘the’ alternative to office work during the COVID-19 pandemic as it has (while enabling employees to fulfill tasks from home) prevented or broken contagion chains. Though not a new approach to work, the recent emphasis on telework has come with pleas to reduce the wages of remote workers. By means of a logical-analytical approach, the article analyzes why such policies are not only unjustifiable in terms of keeping average wages at an at least stable level, but even more if the final sales prices would not shrink accordingly and would boost the share of corporate profits to GDP. Even cutting wages and final sales could be “deflationary” first and “recessionary” then (i.e., impoverish the economy). The article preliminarily analyzes the economic impact of such proposals on countries with a large ICT sector contributing to GDP (i.e., where remote work is facilitated due to the wide diffusion of tools such as Internet connections, computer devices, etc., enabling it) and an underperforming labor market in terms of female participation.

Author Biographies

Edoardo Beretta, Università della Svizzera italiana / Franklin University Switzerland

An Adjunct Professor, the Director of examinations of the Faculty of Economics, a member of the Scientific Directorate and Program Manager of the Lugano part of the Master in Economia e Politiche Internazionali (MEPIN), a member of the Scientific Board of the Bachelor in Economics and Lecturer of the course "Macroeconomia internazionale" at the Università della Svizzera italiana (USI) in Lugano as well as  Adjunct Professor at Franklin University Switzerland (FUS) in Lugano-Sorengo, Prof. Edoardo Beretta's research focus lies on international macroeconomics.

Soorjith Illickal Karthikeyan, Indian Institute of Management Udaipur

Prof. Dr. Soorjith Illickal Karthikeyan is a Professor at the Indian Institute of Management Udaipur and his research area involves organizations, industry dynamics and economic sociology. Before joining the Indian Institute of Management Udaipur, he has been affiliated to academic institutions like the Università della Svizzera italiana (Switzerland) and the Uppsala University (Sweden).


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How to Cite

Beretta, E., Desogus, M., & Karthikeyan, S. I. (2024). The effect of reducing wages of remote workers on society. A preliminary assessment. PSL Quarterly Review, 76(307), 373–392.