A new equilibrium: COVID-19 lockdowns and WFH persistence
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arXiv
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| Format: | Preprint |
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2025
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| _version_ | 1866913904041394176 |
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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 |