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Labour Productivity while Working from Home during the COVID-19 Pandemic

Author

Listed:
  • Sellamitha Riadinni

    (Master of Development Economics Faculty of Economics & Business, Universitas Gadjah Mada)

  • Eny Sulistyaningrum

    (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada)

Abstract

This study aims to determine how the implementation of WFH (Work From Home) affects individual work productivity during the COVID-19 pandemic in Indonesia. National Labour Force Survey (Survei Angkatan Kerja Nasional/Sakernas) data for February 2021 were used in this study. In February 2021, the Sakernas questionnaire was added with questions related to the impact of COVID-19 on employment. This study used the instrumental variable analysis method, which accommodates the issue of endogeneity in the model and working in a crowded place (work_crowded) used as the instrument variable. The estimation results obtained through IV regression show that WFH significantly has a positive effect on work productivity. The group of respondents who implemented WFH in their work system, on average, has statistically higher productivity when compared to the group of respondents who did not implement WFH.

Suggested Citation

  • Sellamitha Riadinni & Eny Sulistyaningrum, 2023. "Labour Productivity while Working from Home during the COVID-19 Pandemic," Gadjah Mada Economics Working Paper Series 202312014, Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada.
    • Handle: RePEc:gme:wpaper:202312014
    as

    Download full text from publisher

    File URL: https://econworkingpaper.feb.ugm.ac.id/download/working_paper/202312014.pdf
    File Function: First version, 2023
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    References listed on IDEAS

    as
    1. Barrero, Jose Maria & Bloom, Nick & Davis, Steven J., 2020. "Why Working From Home Will Stick," SocArXiv wfdbe, Center for Open Science.
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    More about this item

    Keywords

    COVID-19; Pandemic; WFH; Productivity; Instrumental Variable;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • D2 - Microeconomics - - Production and Organizations
    • I1 - Health, Education, and Welfare - - Health

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