The Work-from-Home Technology Boon and Its Consequences
89 Pages Posted: 20 Jan 2021 Last revised: 1 Nov 2023
Morris A. Davis
Rutgers Business School
Andra C. Ghent
University of Utah - David Eccles School of Business
Jesse Gregory
University of Wisconsin - Madison
Date Written: October 31, 2023
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.
Keywords: Technology Adoption, Coronavirus,Telecommuting
JEL Classification: O33, O41, R12, R33
Suggested Citation: Suggested Citation
Morris A. Davis
Rutgers Business School ( email )
Rutgers Business School
One Washington Park #1092
Newark, NJ 07102
United States
Andra C. Ghent (Contact Author)
University of Utah - David Eccles School of Business ( email )
1645 E Campus Center Dr
Salt Lake City, UT 84112-9303
United States
Jesse Gregory
University of Wisconsin - Madison ( email )
716 Langdon Street
Madison, WI 53706-1481
United States
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