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Work from Home and Firm Productivity: The Role of ICT and Size

Author

Listed:
  • Filippo Boeri
  • Riccardo Crescenzi
  • Davide Rigo

Abstract

Using administrative firm-level data covering the universe of remote workers in Italy, and leveraging exogenous pre-pandemic variation in firm-specific access to fibre broadband as an instrument, this paper investigates the impact of post-pandemic adoption of work from home (WFH) on firm productivity. We find that WFH had a large negative impact on productivity during the pandemic. However, larger firms and those with prior ICT investments mitigated these losses. In the longer term, the impact of WFH is no longer significant. Yet, we find suggestive evidence that firms employing highly qualified workers experienced productivity gains.

Suggested Citation

  • Filippo Boeri & Riccardo Crescenzi & Davide Rigo, 2025. "Work from Home and Firm Productivity: The Role of ICT and Size," CESifo Working Paper Series 12253, CESifo.
    • Handle: RePEc:ces:ceswps:_12253
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    File URL: https://www.ifo.de/DocDL/cesifo1_wp12253.pdf
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    Keywords

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    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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