How Does Working from Home Change Individual Productivity? (Japanese)

Koichi Kume, Kotaro Tsuru and Atsushi Kawakami

Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: In this paper, we empirically analyze the relationship between working from home (WFH) and individual productivity before and after the COVID-19 pandemic, using individual data from the "Internet Survey on New Work Styles in the Age of Covid19 and AI" conducted by the Research Institute of Economy, Trade and Industry (RIETI). Specifically, we examined (1) factors that increase the frequency and adaptability of WFH, (2) the relationship between WFH frequency and productivity (subjective productivity, change in productivity relative to pre-COVID-19, and change in productivity relative to expectation), and (3) the relationship between changes in WFH productivity and WFH issues. The results showed that (1) the more work/home infrastructure and WFH systems were in place, the more frequently WFH occurred and the less time it took to adjust to the WFH situation; (2) there was a positive correlation between WFH frequency and subjective productivity, but this became insignificant when the instrumental variable method was used; and. (3) The more people that believed that technology could solve communication problems, the more positive the change in WFH productivity (relative to pre-COVID-19) and productivity change (relative to expectations). These results suggest that in analyzing the relationship between WFH and productivity, it is necessary to consider the productivity level of telecommuters prior to WFH and the effect on productivity over time and that WFH productivity can be enhanced through infrastructure support and telecommuting systems. The analysis also suggests that solutions to communication issues through technology are expected.

Pages: 53 pages
Date: 2023-10
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Persistent link: https://EconPapers.repec.org/RePEc:eti:rdpsjp:23044

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