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Impact of work-from-home during COVID-19 on subsequent work outcomes in Japan

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Listed:
  • Kitamura, Tomoki
  • Adachi, Yoshimi

Abstract

This study examines the impact of work-from-home (WFH) experience during the COVID-19 pandemic on post-pandemic work outcomes in Japan, where WFH adoption was voluntary rather than mandated. Leveraging this unique context, we employ an instrumental variable approach to address potential endogeneity and use industry-stratified sampling to mitigate selection bias. Using original survey data on young and middle-aged workers, we find that WFH experience significantly improved work efficiency, willingness to take on challenging tasks, perceived career opportunities, and income in the post-pandemic period, but did not significantly affect job change intentions. The effects of WFH experience vary by gender, parental status, education, and age. Our results also reveal differences between the extensive and intensive margins of WFH adoption, indicating that transitioning to WFH yields substantial benefits, whereas increasing WFH frequency provides limited additional gains. Given Japan’s government-led Work Style Reform, incorporating WFH into long-term labor policies could enhance productivity and work–life balance, while addressing barriers and limitations in its use.

Suggested Citation

  • Kitamura, Tomoki & Adachi, Yoshimi, 2026. "Impact of work-from-home during COVID-19 on subsequent work outcomes in Japan," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 348-369.
    • Handle: RePEc:eee:ecanpo:v:89:y:2026:i:c:p:348-369
    DOI: 10.1016/j.eap.2025.11.019
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    Keywords

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    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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