The Work-from-Home Technology Boon and its Consequences

Morris Davis, Andra Ghent and Jesse M. Gregory

No 28461, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the impact of widespread adoption of work-from-home (WFH) technology using an equilibrium model where people choose where to live, how to allocate their time between working at home and at the office, and how much space to use in production. Motivated by cross-sectional evidence on WFH, we model WFH as a complement to work at the office. Simulations of the model indicate that the pandemic induced a large change to the relative productivity of WFH that substantially increased home prices and will permanently affect incomes, income inequality, and city structure.

JEL-codes: O33 O41 R12 R33 (search for similar items in EconPapers)
Date: 2021-02
New Economics Papers: this item is included in nep-lma
Note: AP EFG LS
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Citations: View citations in EconPapers (34)

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Journal Article: The Work-From-Home Technology Boon and its Consequences (2024)
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