Why Working from Home Will Stick
National Bureau of Economic Research Working Paper Series
; No. 28731, 2021.
Article
in English
| NBER | ID: grc-748652
ABSTRACT
COVID-19 drove a mass social experiment in working from home (WFH). We survey more than 30,000 Americans over multiple waves to investigate whether WFH will stick, and why. Our data say that 20 percent of full workdays will be supplied from home after the pandemic ends, compared with just 5 percent before. We develop evidence on five reasons for this large shift better-than-expected WFH experiences, new investments in physical and human capital that enable WFH, greatly diminished stigma associated with WFH, lingering concerns about crowds and contagion risks, and a pandemic-driven surge in technological innovations that support WFH. We also use our survey data to project three consequences First, employees will enjoy large benefits from greater remote work, especially those with higher earnings. Second, the shift to WFH will directly reduce spending in major city centers by at least 5-10 percent relative to the pre-pandemic situation. Third, our data on employer plans and the relative productivity of WFH imply a 5 percent productivity boost in the post-pandemic economy due to re-optimized working arrangements. Only one-fifth of this productivity gain will show up in conventional productivity measures, because they do not capture the time savings from less commuting.
Full text:
Available
Collection:
Databases of international organizations
Database:
NBER
Type of study:
Observational study
/
Prognostic study
/
Qualitative research
Topics:
Long Covid
Language:
English
Journal:
National Bureau of Economic Research Working Paper Series
Year:
2021
Document Type:
Article
Similar
MEDLINE
...
LILACS
LIS