Labour Productivity while Working from Home during the COVID-19 Pandemic

Sellamitha Riadinni () and Eny Sulistyaningrum ()
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Sellamitha Riadinni: Master of Development Economics Faculty of Economics & Business, Universitas Gadjah Mada
Eny Sulistyaningrum: Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada

No 202312014, Gadjah Mada Economics Working Paper Series from Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada

Abstract: This study aims to determine how the implementation of WFH (Work From Home) affects individual work productivity during the COVID-19 pandemic in Indonesia. National Labour Force Survey (Survei Angkatan Kerja Nasional/Sakernas) data for February 2021 were used in this study. In February 2021, the Sakernas questionnaire was added with questions related to the impact of COVID-19 on employment. This study used the instrumental variable analysis method, which accommodates the issue of endogeneity in the model and working in a crowded place (work_crowded) used as the instrument variable. The estimation results obtained through IV regression show that WFH significantly has a positive effect on work productivity. The group of respondents who implemented WFH in their work system, on average, has statistically higher productivity when compared to the group of respondents who did not implement WFH.

Keywords: COVID-19; Pandemic; WFH; Productivity; Instrumental Variable (search for similar items in EconPapers)
JEL-codes: D2 I1 J0 J3 J6 (search for similar items in EconPapers)
Pages: 14 pages
Date: 2023-12
New Economics Papers: this item is included in nep-eff and nep-sea
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