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Distracting activities in times of COVID‐19 pandemic and their relation to labor supply

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  • José Nilmar de Oliveira
  • Jaime Orrillo
  • Franklin Gamboa

Abstract

Under the hypothesis that workers become distracted and spend less time working during the COVID‐19 pandemic, we analyze, via a model of endogenous growth, the relationship between distracting activities and home office supply. We find a strong theoretical relation between the intertemporal elasticity of substitution of the time spent on distracting activities and the intertemporal elasticity of substitution of home office labor. We also analyze the effect that the intertemporal elasticity of substitution of home office labor has on the marginal productivity of effective labor and the growth rate of production.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:ijethy:v:18:y:2022:i:3:p:219-231
    DOI: 10.1111/ijet.12310
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    References listed on IDEAS

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    1. MORIKAWA Masayuki, 2018. "Long Commuting Time and the Benefits of Telecommuting," Discussion papers 18025, Research Institute of Economy, Trade and Industry (RIETI).
    2. Eriksson, Clas, 1996. "Economic growth with endogenous labour supply," European Journal of Political Economy, Elsevier, vol. 12(3), pages 533-544, November.
    3. 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.
    4. 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.
    5. Glenn Dutcher, E., 2012. "The effects of telecommuting on productivity: An experimental examination. The role of dull and creative tasks," Journal of Economic Behavior & Organization, Elsevier, vol. 84(1), pages 355-363.
    6. 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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