Productivity Dynamics of Working from Home: An update

This study, based on a panel survey of employees from 2020 to 2022, analyzes the dynamics of working from home in Japan since the onset of the Covid-19 pandemic. The results indicate that, first, the percentage of those who engaged 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 about 20% lower than in the workplace at the end of 2022. Fourth, the productivity at home of those who continue this workstyle has peaked in the mid-80% range, and the recent increase in average productivity is the result of selection effect of employers who are less productive at home returning to the workplace. Fifth, the percentage of employees willing to work from home at high frequency even after the end of the pandemic has been steadily increasing. These results indicate that natural selection based on productivity is functioning and that the amenity value of this workstyle is increasing.

Published: Morikawa, Masayuki, 2023. "Productivity dynamics of working from home," The Economic Review, Volume 74, No. 1 & 2 (2023), er.ar.026423.
https://econ-review.ier.hit-u.ac.jp/all-issues/74/1and2/er.ar.026423