No. 958 - Work from home, labour market participation and employment

by Riccardo Crescenzi, Davide Dottori and Davide Rigo
July 2025
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Work from home (WFH) has become more widespread since the pandemic, but the evidence about its impacts on labour market participation and employment is still scant. This paper estimates the effects for Italy based on data at the local labour market level. The analysis also assesses whether and how these effects are influenced by the characteristics of remote workers and the local conditions.

WFH has had a positive effect on labour market participation and, to a lesser extent, on employment. A larger impact can be attributed to women, particularly those of child-rearing age, and to areas with fewer early childcare services. Although it is more widespread in urban and economically-advanced areas, WFH has had a greater impact on participation choices in less densely populated areas and in the South.

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  1. 28 July 2025
    No. 958 - Work from home, labour market participation and employment
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