Productivity Dynamics of Working from Home

Based on a panel survey of employees from 2020 to 2022, this study analyzes the dynamics of working from home in Japan since the onset of the COVID-19 pandemic. The results are summarized as follows: First, the percentage of those who engage in working from home is still much higher at the end of 2022 than before the pandemic, but it continues to decline. Second, the mean frequency of working from home continues to be two to three days per week. Third, subjective productivity at home continues to improve but is still, on average, approximately 20% lower than in the workplace at the end of 2022. Fourth, the productivity at home of those who continue this work style has peaked in the mid-80% range, and the recent increase in average productivity is the result of the selection effect of employees who are less productive at home returning to the workplace. Fifth, the percentage of employees willing to work from home at a high frequency has been steadily increasing, even after the end of the pandemic. These results indicate that natural selection based on productivity is functioning and that the amenity value of this work style is increasing.