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The Work-from-Home Technology Boon and its Consequences / Morris A. Davis, Andra C. Ghent, Jesse M. Gregory.

By: Contributor(s): Material type: TextTextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w28461.Publication details: Cambridge, Mass. National Bureau of Economic Research 2021.Description: 1 online resource: illustrations (black and white)Subject(s): Online resources: Available additional physical forms:
  • Hardcopy version available to institutional subscribers
Abstract: We study the impact of widespread adoption of work-from-home (WFH) technology using an equilibrium model where people choose where to live, how to allocate their time between working at home and at the office, and how much space to use in production. A key parameter is the elasticity of substitution between working at home and in the office that we estimate using cross-sectional time-use data. The model indicates that the pandemic induced a large change to the relative productivity of working at home which will permanently affect incomes, income inequality, and city structure.
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February 2021.

We study the impact of widespread adoption of work-from-home (WFH) technology using an equilibrium model where people choose where to live, how to allocate their time between working at home and at the office, and how much space to use in production. A key parameter is the elasticity of substitution between working at home and in the office that we estimate using cross-sectional time-use data. The model indicates that the pandemic induced a large change to the relative productivity of working at home which will permanently affect incomes, income inequality, and city structure.

Hardcopy version available to institutional subscribers

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