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Work from Home and Disability Employment

Author

Listed:
  • Nicholas Bloom
  • Gordon B. Dahl
  • Dan-Olof Rooth

Abstract

There has been a dramatic rise in disability employment since the pandemic, while work from home (WFH) has risen fourfold. This paper asks whether the two are causally related. Controlling for compositional changes and labor market tightness, a 1 percentage point increase in WFH increases full-time employment by 1.0 percent for individuals with a physical disability. The postpandemic increase in working from home explains 68-85 percent of the rise in full-time employment. Wage data suggest that WFH increased the supply of workers with a physical disability, likely by reducing commuting costs and enabling better control of working conditions.

Suggested Citation

  • Nicholas Bloom & Gordon B. Dahl & Dan-Olof Rooth, 2026. "Work from Home and Disability Employment," American Economic Review: Insights, American Economic Association, vol. 8(2), pages 179-195, June.
    • Handle: RePEc:aea:aerins:v:8:y:2026:i:2:p:179-95
    DOI: 10.1257/aeri.20240538
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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J28 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Safety; Job Satisfaction; Related Public Policy
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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