EconPapers    
Economics at your fingertips  
 

The impact of COVID-19 on Japanese firms: mobility and resilience via remote work

Daiji Kawaguchi (), Sagiri Kitao () and Manabu Nose ()
Additional contact information
Daiji Kawaguchi: The University of Tokyo, Research Institute of Economy, Trade and Industry, and IZA
Manabu Nose: The International Monetary Fund and the University of Tokyo

International Tax and Public Finance, 2022, vol. 29, issue 6, No 4, 1419-1449

Abstract: Abstract Drawing on the original survey of Japanese firms during the COVID-19 pandemic, we estimate the impact of the crisis on firms’ sales, employment and hours worked per employee and roles of work-from-home (WfH) arrangements in mitigating negative effects. We find that the lowered mobility, induced by the state of emergency declared by the government and fear of infection, significantly contracted firms’ activities. On average, a 10% reduction in mobility reduced sales by 2.8% and hours worked by 2.1%, but did not affect employment. This muted employment response is consistent with limited changes in aggregate employment at the extensive margin during COVID-19 in Japan. We find that the adoption of WfH before COVID-19 mitigated the negative impact by 55% in terms of sales and by 35% in terms of hours worked. Adapting to the pandemic by increasing the number of remote work employees also helped firms moderately mitigate the negative impact on sales and work hours and reduce the probability of filing for the short-time work subsidy.

Keywords: COVID-19; Work-from-home (WfH); Firm sales; Employment; Hours worked; Short-time work; Japanese economy (search for similar items in EconPapers)
JEL-codes: H5 J5 J6 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10797-022-09749-7 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The impact of COVID-19 on Japanese firms: Mobility and resilience via remote work (2021) Downloads
Working Paper: The Impact of COVID-19 on Japanese Firms: Mobility and Resilience via Remote Work (2021) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:itaxpf:v:29:y:2022:i:6:d:10.1007_s10797-022-09749-7

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

DOI: 10.1007/s10797-022-09749-7

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2023-01-11
Handle: RePEc:kap:itaxpf:v:29:y:2022:i:6:d:10.1007_s10797-022-09749-7