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The Home Office in Times of COVID-19 Pandemic and its impact in the Labor Supply

Author

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  • Jos'e Nilmar Alves de Oliveira
  • Jaime Orrillo
  • Franklin Gamboa

Abstract

We lightly modify Eriksson's (1996) model to accommodate the home office in a simple model of endogenous growth. By home office we mean any working activity carried out away from the workplace which is assumed to be fixed. Due to the strong mobility restrictions imposed on citizens during the COVID-19 pandemic, we allow the home office to be located at home. At the home office, however, in consequence of the fear and anxiety workers feel because of COVID-19, they become distracted and spend less time working. We show that in the long run, the intertemporal elasticity of substitution of the home-office labor is sufficiently small only if the intertemporal elasticity of substitution of the time spent on distracting activities is small enough also.

Suggested Citation

  • Jos'e Nilmar Alves de Oliveira & Jaime Orrillo & Franklin Gamboa, 2020. "The Home Office in Times of COVID-19 Pandemic and its impact in the Labor Supply," Papers 2007.02935, arXiv.org, revised Jul 2020.
    • Handle: RePEc:arx:papers:2007.02935
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    References listed on IDEAS

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    1. Eriksson, Clas, 1996. "Economic growth with endogenous labour supply," European Journal of Political Economy, Elsevier, vol. 12(3), pages 533-544, November.
    2. Nicholas Bloom & James Liang & John Roberts & Zhichun Jenny Ying, 2015. "Does Working from Home Work? Evidence from a Chinese Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 130(1), pages 165-218.
    3. Dutcher, E. Glenn & Saral, Krista Jabs, 2012. "Does Team Telecommuting Affect Productivity? An Experiment," MPRA Paper 41594, University Library of Munich, Germany.
    4. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Specific pandemics > Covid-19 > Economic consequences > Employment and Work > Work from home

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    1. José Nilmar de Oliveira & Jaime Orrillo & Franklin Gamboa, 2022. "Distracting activities in times of COVID‐19 pandemic and their relation to labor supply," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(3), pages 219-231, September.

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