Discussion paper

DP11924 Is Distance Dead? Face-to-Face Communication and Productivity in Teams

Has technology made face-to-face communication redundant? We investigate using a natural experiment in an organisation where a worker must communicate complex electronic information to a colleague. Productivity is higher when the teammates are (exogenously) in the same room and, inside the room, when their desks are closer together. We establish face-to-face communication as the main mechanism, and rule out alternative channels such as higher effort by co-located workers. The effect is stronger for urgent and complex tasks, for homogeneous workers, and for high pressure conditions. We highlight the opportunity costs of face-to-face communication and their dependence on organisational slack.

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Citation

Blanes i Vidal, J and T Kirchmaier (eds) (2017), “DP11924 Is Distance Dead? Face-to-Face Communication and Productivity in Teams”, CEPR Press Discussion Paper No. 11924. https://cepr.org/publications/dp11924