Work from Home before and after the COVID-19 Outbreak

Abstract

Based on novel survey data, we document a persistent rise in work from home (WFH) over the course of the COVID-19 pandemic. Using theory and direct survey evidence, we argue that three-quarters of this increase reflects the adoption of new work arrangements that will likely be permanent for many workers. A quantitative model matched to survey data predicts that twice as many workers will WFH full-time postpandemic compared to prepandemic, and that one in every five instead of seven workdays will be WFH. These model predictions are consistent with survey evidence on workers’ own expectations about WFH in the future. (JEL I12, I18, J22, M54)