The Work-at-Home Technology Boon and its Consequences

63 Pages Posted: 20 Jan 2021

See all articles by Morris A. Davis

Morris A. Davis

Rutgers Business School

Andra C. Ghent

University of North Carolina (UNC) at Chapel Hill - Finance Area

Jesse Gregory

University of Wisconsin - Madison

Date Written: January 18, 2021

Abstract

We study the impact of widespread adoption of work-at-home 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. A key parameter is the elasticity of substitution between working at home and in the office that we estimate using cross-sectional time-use data. The model indicates that the pandemic induced a large change to the relative productivity of working at home which will permanently affect incomes, income inequality, and city structure.

Keywords: Technology Adoption. Coronavirus. Telecommuting

JEL Classification: O33, O41, R12, R33

Suggested Citation

Davis, Morris A. and Ghent, Andra C. and Gregory, Jesse, The Work-at-Home Technology Boon and its Consequences (January 18, 2021). Available at SSRN: https://ssrn.com/abstract=3768847 or http://dx.doi.org/10.2139/ssrn.3768847

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 North Carolina (UNC) at Chapel Hill - Finance Area ( email )

Kenan-Flagler Business School
Chapel Hill, NC 27599-3490
United States

Jesse Gregory

University of Wisconsin - Madison ( email )

716 Langdon Street
Madison, WI 53706-1481
United States

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