MACROECONOMIC EFFECTS OF TELEWORKING IN EU27: STOCHASTIC FRONTIER APPROACH

Lena Malesevic Perovic

Regional Science Inquiry, 2021, vol. XIII, issue 2, 33-42

Abstract: The main aim of this paper is to investigate macroeconomic effects of teleworking during the COVID-19 pandemic, using an atypical approach. We apply stochastic frontier analysis to a Cobb-Douglas production function broadened with teleworkability variable, and analyse the level of (in)efficiency of EU27 countries in producing their GDPs. We find that increasing the percentage of jobs that can be done at home by 1 percentage point reduces the level of technical inefficiency by 3.5%. Additionally, we use a unique e-survey conducted in April and May of 2020, which provides the data on the share of people who started working from home as a results of a COVID-19 situation, and combine it with the teleworkability variable. Overall, our findings suggest that more developed EU countries have a higher share of teleworkable jobs, which in turn reduces their inefficiencies, and furthermore results in more people beginning to work from home in the pandemic.

Keywords: teleworking; production function; stochastic frontier analysis; EU; COVID-19 (search for similar items in EconPapers)
JEL-codes: C21 O33 O4 O52 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hrs:journl:v:xiii:y:2021:i:2:p:33-42

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