Working from Home: Global Trends and Consequences
Friday, Jan. 6, 2023 8:00 AM - 10:00 AM (CST)
- Chair: Johannes Wieland, University of California-San Diego
Working From Home After COVID-19: Evidence From Job Postings in 20 Countries
AbstractWe study the adoption of telework during the COVID-19 pandemic and beyond. We assemble a novel high- frequency database of job postings advertising work from home (telework) covering 20 countries and 55 occupation categories, using data from the online job site Indeed. Exploiting changes in pandemic severity across countries and differences in the feasibility of telework across occupations in a triple differences identification strategy, we find that (i) increases in pandemic severity substantially raise advertised telework but (ii) declines have no effect on advertised telework. Overall, these results imply that the pandemic has permanently unlocked the potential to telework, especially in high-skilled occupations where telework is most feasible. Public policies will need to adapt to make the most of permanently higher telework in terms of productivity and worker well-being.
Living on My Own: The Impact of the Covid-19 Pandemic on Housing Preferences
AbstractWe quantify the impact of the COVID-19 pandemic on the housing demand of Italian households by exploiting new information on their search activity on the market. The data comes from two unique datasets: the Italian Housing Market Survey, conducted quarterly on a large sample of real estate agents, and the universe of weekly housing sales advertisements taken from Immobiliare.it, a popular online portal for real estate services in Italy. The latter includes high-frequency and house-specific measures of the online interest of potential home buyers. The pandemic generated a large increase in demand for houses located in areas with a lower population density, mainly driven by a significant shift in preferences towards larger, single-family housing properties, with outdoor spaces. Fear of contagion, lockdown measures and the growth in remote working arrangements all likely shaped the evolution of housing demand, with potentially long-lasting consequences on the housing market.
Housing Demand and Remote Work
AbstractWhat explains record U.S. house price growth during the Covid-19 pandemic? We show that the shift to remote work explains over one half of the 23.8 percent national house price increase over this period. Using variation in remote work exposure across U.S. metropolitan areas we estimate that an additional percentage point of remote work causes a 0.90 percent increase in house prices after controlling for negative spillovers from migration. This cross-sectional estimate combined with the aggregate shift to remote work implies that remote work raised aggregate U.S. house prices by 14.6 percent. Using a model of remote work and location choice we argue that this estimate is a lower bound on the aggregate effect. Our results imply that the evolution of remote work is likely to have large effects on the future path of house prices and inflation.
- E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- O3 - Innovation; Research and Development; Technological Change; Intellectual Property Rights