The Work-from-Home Technology Boon and Its Consequences

89 Pages Posted: 20 Jan 2021 Last revised: 8 Apr 2022

See all articles by Morris A. Davis

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: April 6, 2022

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 and recent real estate price data indicate that the pandemic induced a large change to the relative productivity of WFH, one that 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-from-Home Technology Boon and Its Consequences (April 6, 2022). 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 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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