Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/324373 
Year of Publication: 
2025
Series/Report no.: 
IZA Discussion Papers No. 17975
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper documents a robust link between COVID-19 lockdowns and the uptake and persistence of working from home (WFH) practices. Exploiting rich longitudinal data, we use a difference-in-differences strategy to compare office workers in three heavily locked-down Australian states to similar workers in less affected states. Locked-down workers sustain 43% higher WFH levels through 2023 – 0.5 days per week – with a monotonic dose–response relationship. Persistence is driven by adjustments on both sides of the labor market: employers downsize office space and open remote/hybrid positions, while employees relocate away from city centers and invest in home offices and technology.
Subjects: 
COVID-19
persistence
WFH
work from home
lockdowns
habit formation
JEL: 
I18
J22
M54
Document Type: 
Working Paper

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