IDEAS home Printed from https://ideas.repec.org/p/eve/wpaper/23-09.html
   My bibliography  Save this paper

A New Norm? Exploring the Shift to Working From Home in the Post-Pandemic Labor Market

Author

Listed:
  • Malak Kandoussi

    (EPEE, Université Paris-Saclay, University of Evry)

Abstract

This paper focuses on examining the impact of working from home on labor market outcomes using an extension of the search and matching model. The objective is to address the data gap to (i) explain the increase in the share of remote workers following the COVID-19 crisis; (ii) investigate the effects of this shift on labor market outcomes in two distinct areas; and (iii) assess the potential benefits of working from home in reducing inequalities between urban and rural regions. We show that although the Post-COVID economy suffers from the increase in commuting costs, both the decrease in the disutility in remote work and the increase in productivity of remoters offset this negative impact. We also show that when the disutility of remote work is sufficiently low, it lowers unemployment and wage inequalities between the urban and rural areas. Finally, we analyze the welfare of unemployed workers and economic wealth. It highlights the benefits of reducing remote work disutility.

Suggested Citation

  • Malak Kandoussi, 2023. "A New Norm? Exploring the Shift to Working From Home in the Post-Pandemic Labor Market," Documents de recherche 23-09, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    • Handle: RePEc:eve:wpaper:23-09
    as

    Download full text from publisher

    File URL: https://www.univ-evry.fr/fileadmin/mediatheque/ueve-institutionnel/03_Recherche/laboratoires/Epee/pub/WorkingPapers_CEPS_9.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. van den Berg, Gerard J & Gorter, Cees, 1997. "Job Search and Commuting Time," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 269-281, April.
    2. Barrero, Jose Maria & Bloom, Nick & Davis, Steven J., 2020. "Why Working From Home Will Stick," SocArXiv wfdbe, Center for Open Science.
    3. Cevat Giray Aksoy & Jose Maria Barrero & Nicholas Bloom & Steven J. Davis & Mathias Dolls & Pablo Zarate, 2022. "Working from Home Around the World," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 53(2 (Fall)), pages 281-360.
    4. Jan Rouwendal, 2004. "Search Theory and Commuting Behavior," Growth and Change, Wiley Blackwell, vol. 35(3), pages 391-418, September.
    5. José María Barrero & Nicholas Bloom & Steven J. Davis, 2023. "The Evolution of Work from Home," Journal of Economic Perspectives, American Economic Association, vol. 37(4), pages 23-50, Fall.
    6. Cevat Giray Aksoy & Jose Maria Barrero & Nicholas Bloom & Steven J. Davis & Mathias Dolls & Pablo Zarate, 2022. "Working from Home Around the World," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 53(2 (Fall)), pages 281-360.
    7. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
    8. Künn, Steffen & Seel, Christian & Zegners, Dainis, 2020. "Cognitive Performance in the Home Office - Evidence from Professional Chess," IZA Discussion Papers 13491, Institute of Labor Economics (IZA).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Esposito, Piero & Mendolia, Silvia & Scicchitano, Sergio & Tealdi, Cristina, 2024. "Working from Home and Job Satisfaction: The Role of Gender and Personality Traits," IZA Discussion Papers 16751, Institute of Labor Economics (IZA).
    2. Jean-Marc Bourgeon & José de Sousa & Alexis Noir-Luhalwe, 2022. "Social Distancing and Risk Taking: Evidence from a Team Game Show [Distanciation sociale et prise de risque : Les résultats d'un jeu d'équipe]," SciencePo Working papers Main hal-03792423, HAL.
    3. Bergeaud, Antonin & Eyméoud, Jean-Benoît & Garcia, Thomas & Henricot, Dorian, 2023. "Working from home and corporate real estate," Regional Science and Urban Economics, Elsevier, vol. 99(C).
    4. Vij, Akshay & Souza, Flavio F. & Barrie, Helen & Anilan, V. & Sarmiento, Sergio & Washington, Lynette, 2023. "Employee preferences for working from home in Australia," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 782-800.
    5. Böhnen, Carina & Kuhnimhof, Tobias, 2024. "Working from home and commuter travel in germany – panel data analysis of long-term effects," Transportation Research Part A: Policy and Practice, Elsevier, vol. 190(C).
    6. Behrens, Kristian & Kichko, Sergei & Thisse, Jacques-Francois, 2024. "Working from home: Too much of a good thing?," Regional Science and Urban Economics, Elsevier, vol. 105(C).
    7. Giovanni Peri & Reem Zaiour, 2023. "Changes in international immigration and internal native mobility after COVID-19 in the USA," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(4), pages 2389-2428, October.
    8. Bloom, Nicholas & Davis, Steven J. & Hansen, Stephen & Lambert, Peter John & Sadun, Raffaella & Taska, Bledi, 2023. "Remote work across jobs, companies and space," LSE Research Online Documents on Economics 121302, London School of Economics and Political Science, LSE Library.
    9. Benjamin Cowan, 2024. "Time use, college attainment, and the working-from-home revolution," Journal of Population Economics, Springer;European Society for Population Economics, vol. 37(3), pages 1-27, September.
    10. Michele Mariani & Livia Ristuccia & Pasqualino Montanaro, 2023. "Propensity to work remotely in the Bank of Italy: a behavioural analysis," Questioni di Economia e Finanza (Occasional Papers) 753, Bank of Italy, Economic Research and International Relations Area.
    11. Yuting Chen & Patricia Cortes & Gizem Kosar & Jessica Pan & Basit Zafar, 2023. "The Impact of COVID-19 on Workers' Expectations and Preferences for Remote Work," AEA Papers and Proceedings, American Economic Association, vol. 113, pages 556-561, May.
    12. Gokan,Toshitaka & Kichko,Sergei & Matheson,Jesse A & Thisse,Jacques-François, 2022. "How the rise of teleworking will reshape labor markets and cities?," IDE Discussion Papers 868, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    13. Jose Maria Barrero & Nicholas Bloom & Steven J. Davis, 2023. "Long Social Distancing," Journal of Labor Economics, University of Chicago Press, vol. 41(S1), pages 129-172.
    14. Jesse Matheson & Brendon McConnell & James Rockey & Argyris Sakalis, 2023. "Do Remote Workers Deter Neighborhood Crime? Evidence from the Rise of Working from Home," Working Papers 2023020, The University of Sheffield, Department of Economics.
    15. Nicholas Bloom & Ruobing Han & James Liang, 2022. "How hybrid working from home works out," POID Working Papers 059, Centre for Economic Performance, LSE.
    16. Burdett, Ashley & Etheridge, Ben & Tang, Li & Wang, Yikai, 2024. "Worker productivity during Covid-19 and adaptation to working from home," European Economic Review, Elsevier, vol. 167(C).
    17. Laura Battaglia & Timothy Christensen & Stephen Hansen & Szymon Sacher, 2025. "Inference for Regression with Variables Generated by AI or Machine Learning," Cowles Foundation Discussion Papers 2421, Cowles Foundation for Research in Economics, Yale University.
    18. Duanyi Yang & Erin L. Kelly & Laura D. Kubzansky & Lisa Berkman, 2023. "Working from Home and Worker Well-being: New Evidence from Germany," ILR Review, Cornell University, ILR School, vol. 76(3), pages 504-531, May.
    19. repec:ags:aaea22:335486 is not listed on IDEAS
    20. Guillaume Gueguen & Claudia Senik, 2023. "Adopting telework: The causal impact of working from home on subjective well‐being," British Journal of Industrial Relations, London School of Economics, vol. 61(4), pages 832-868, December.
    21. Jean-Victor Alipour & Oliver Falck & Simon Krause & Carla Krolage & Sebastian Wichert, 2022. "Working from Home and Consumption in Cities," CESifo Working Paper Series 10000, CESifo.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eve:wpaper:23-09. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Samuel Nosel (email available below). General contact details of provider: https://edirc.repec.org/data/epevrfr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.