With people around the world in lock down, working from home is the new reality for huge numbers of workers. But what are the economic impacts on firms and workers? When this is all over will working from home become the new normal or will we all want to get back to the office?
The key takeaway seems to be choice. We are all different, some thrive of social interactions, others find the lack of distraction allows us to be more productive. Some lack space or have children in need of attention.
The current period will inevitably have costs. Innovation and creativity feed of social interactions, video-conferences have severe limitations. Many will lack a good work from home set up (a wireless mouse makes a surprisingly big difference). With schools closed, children vie for parents attention.
But it will also have benefits less time spent commuting is more time to spend with families or doing life admin. For firms struggling to survive the coming recession the ability to reduce rental expenditures will be an attractive proposition. Working from home was already a growing trend, the crisis will only serve to accelerate this. No one knows what the world will look like on the other side of this but I would be surprised if post-pandemic we don't see a substantial shift in the number of workers who spend at least some of their time at home.
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