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Macroeconomic Effects Of Teleworking In Eu27: Stochastic Frontier Approach

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  • Lena MALESEVIC PEROVIC

    (Full professor, University of Split, Faculty of Economics, Business and Tourism, Split, Croatia and CERGE-EI Teaching Fellow)

Abstract

The main aim of this paper is to investigate macroeconomic effects of teleworking during the COVID-19 pandemic, using an atypical approach. We apply stochastic frontier analysis to a Cobb-Douglas production function broadened with teleworkability variable, and analyse the level of (in)efficiency of EU27 countries in producing their GDPs. We find that increasing the percentage of jobs that can be done at home by 1 percentage point reduces the level of technical inefficiency by 3.5%. Additionally, we use a unique e-survey conducted in April and May of 2020, which provides the data on the share of people who started working from home as a results of a COVID-19 situation, and combine it with the teleworkability variable. Overall, our findings suggest that more developed EU countries have a higher share of teleworkable jobs, which in turn reduces their inefficiencies, and furthermore results in more people beginning to work from home in the pandemic.

Suggested Citation

  • Lena MALESEVIC PEROVIC, 2021. "Macroeconomic Effects Of Teleworking In Eu27: Stochastic Frontier Approach," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(2), pages 33-42, June.
  • Handle: RePEc:hrs:journl:v:xiii:y:2021:i:2:p:33-42
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    References listed on IDEAS

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    1. Robert C. Feenstra & Robert Inklaar & Marcel P. Timmer, 2015. "The Next Generation of the Penn World Table," American Economic Review, American Economic Association, vol. 105(10), pages 3150-3182, October.
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    Cited by:

    1. Veacheslav SHEBANIN & Iurii KORMYSHKIN & Alona KLIUCHNYK & Iryna ALLAKHVERDIYEVA & Valentyna UMANSKA, 2022. "Tools Of Formation Of The System Of Socio-Economic Security Of Territorial Communities Of The Region," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 127-136, June.

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    More about this item

    Keywords

    teleworking; production function; stochastic frontier analysis; EU; COVID-19;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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