Efficient work-from-home allocation for pandemic mitigation

Wei-Cheng Chen (), Yi-Cheng Kao () and Yi-Hsuan Lin ()
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Wei-Cheng Chen: Academia Sinica
Yi-Cheng Kao: Chung Yuan Christian University
Yi-Hsuan Lin: Academia Sinica

Review of Economic Design, 2024, vol. 28, issue 1, No 3, 45-67

Abstract: Abstract We propose a mechanism to help companies minimize employee infections during a pandemic by allocating work-from-home (WFH) opportunities, even when the company lacks information about individual infection risks. The mechanism is based on a two-period model where the company has two groups of workers: high-risk and low-risk. Employees are given two channels, which offer different chances of getting long-term and short-term WFH opportunities. Our findings suggest that the company should provide as many long-term WFH opportunities as possible, rather than allocating workers to work remotely only during a period with a lower quota. High-risk workers should have a higher chance of getting long-term WFH opportunities, while low-risk workers should be more likely to get short-term WFH opportunities. Additionally, we suggest that the company may benefit from reserving some WFH resources in certain situations.

Keywords: COVID-19; Working from home; Mechanism design (search for similar items in EconPapers)
JEL-codes: D47 D82 I12 J28 R12 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10058-023-00330-0

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