A new equilibrium: COVID-19 lockdowns and WFH persistence

Fuente: arXiv
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Main Authors: Ketter, Laura, Morris, Todd, Yu, Lizi
Format: Preprint
Published: 2025
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author Ketter, Laura
Morris, Todd
Yu, Lizi
author_facet Ketter, Laura
Morris, Todd
Yu, Lizi
contents This paper documents a robust link between COVID-19 lockdowns and the uptake and persistence of working from home (WFH) practices. Exploiting rich longitudinal data, we use a difference-in-differences strategy to compare office workers in three heavily locked-down Australian states to similar workers in less affected states. Locked-down workers sustain 43% higher WFH levels through 2023 - 0.5 days per week - with a monotonic dose-response relationship. Persistence is driven by adjustments on both sides of the labor market: employers downsize office space and open remote or hybrid positions, while employees relocate away from city centers and invest in home offices and technology.
format Preprint
id arxiv_https___arxiv_org_abs_2506_16671
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle A new equilibrium: COVID-19 lockdowns and WFH persistence
Ketter, Laura
Morris, Todd
Yu, Lizi
General Economics
Economics
This paper documents a robust link between COVID-19 lockdowns and the uptake and persistence of working from home (WFH) practices. Exploiting rich longitudinal data, we use a difference-in-differences strategy to compare office workers in three heavily locked-down Australian states to similar workers in less affected states. Locked-down workers sustain 43% higher WFH levels through 2023 - 0.5 days per week - with a monotonic dose-response relationship. Persistence is driven by adjustments on both sides of the labor market: employers downsize office space and open remote or hybrid positions, while employees relocate away from city centers and invest in home offices and technology.
title A new equilibrium: COVID-19 lockdowns and WFH persistence
topic General Economics
Economics
url https://arxiv.org/abs/2506.16671