_Flexible work described as the choice of job B when presented B1 or B2 (implying worker chooses work hours) and the choice of Job A when presented B3 or B4 (implying client employer choose workhours); job A has a fixed work schedule of 9 AM to 5 PM Monday – Friday._ As with the analysis of the correlates of the preference for working from home, here too we find that there is considerable heterogeneity in the preference for flexible work hours, as the R-squared for the estimation is less than 6 percent for the combined sample. Again, we find that the share of explained variation for freelancers is less than half that of those in standard employment, further underlining that this is an extremely heterogeneous group with no single type of preference for the hours of work. Demographic characteristics also do not appear to influence the preference for the location of work.

After controlling for all characteristics, among women those in standard employment have a lower preference for flexible work hours, reflecting potentially the selection of women into standard employment in Malaysia where women’s labor force participation remains relatively low compared to other Southeast Asian economies (Schmillen et al, 2019).

Among all groups, respondents who attach high importance to flexibility are much more likely to choose more flexible work hours, and those who attach high importance to earning well are less likely to do so, which suggests an internally consistent logic underlining trade-offs between income and flexibility. Those whose current work offers opportunities for acquiring new skills, especially among freelancers, value flexible working hours more. However, those whose current work offers opportunities for building a professional profile, or makes their CV look good, are more likely to prefer less flexible work hours that are either set by the employer/ client or are routine 9-5 arrangements. This offers some evidence that work that is viewed as more prestigious may entice workers to sacrifice some flexibility in favor of professional development.

Interestingly, other characteristics of respondents’ current jobs, or attributes that they may value such as close interaction with colleagues or working in international teams does not seem to affect the preference for the hours of work.

# 4. Discussion and Conclusions

This paper has attempted to understand the valuations of and trade-offs between flexibility and income among workers in standard employment and digital freelancers, in the context of Malaysia, a fast growing East Asian economy that is experiencing a sharp rise of the gig economy and digital freelancing. Analyzing the results of a unique survey experiment in which respondents are asked to choose between jobs characterized by standard working conditions, and more flexible alternatives, we draw important lessons for management practices and employment policies globally.

First, we find considerable heterogeneity in preferences for flexibility with respect to the location and hours of work among freelancers as well as standard employees. While most freelancers tend to prefer working from home for two to five days per week, a sizable share (around 40 percent) of those in standard employment would also like not to have to work from an office all five days of the week, even if that came at a cost of 10 to 20 percent of their income. Equally, around 40 percent of current freelancers would like to work from a fixed office if that translates into higher earnings.

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