Working from home and income inequality: risks of a ‘new normal’ with COVID-19

• DOI: 10.1007/s00148-020-00800-7
• Publication Date: 2020-09-12T05:02:25Z
• Authors: Luca Bonacini; Giovanni Gallo; Sergio Scicchitano
• Keywords: Economics and Econometrics; Original Paper; 05 social sciences; 1. No poverty; COVID-19; Inequality; Unconditional quantile regressions; Working from home;; COVID-19.Workingfromhome.Inequality.Unconditionalquantile regressions; 3. Good health; 8. Economic growth; 0502 economics and business; 10. No inequality; COVID-19; working from home; inequality; unconditional quantile regressions; Demography

In the current context of COVID-19 pandemic, working from home (WFH) became great importance for a large share employees since it represents only option to both continue and minimise risk virus exposure. Uncertainty about duration pandemic future contagion waves even led companies view WFH as 'new normal' way working. Based on influence function regression methods, this paper explores potential consequences in labour income distribution related long-lasting increase feasibility among Italian employees. Results show that positive shift would be associated with an average income, but benefit not equally distributed Specifically, opportunity favour male, older, high-educated, high-paid However, 'forced innovation' more living provinces have been affected by novel coronavirus. thus risks exacerbating pre-existing inequalities market, especially if will adequately regulated. As consequence, study suggests policies aimed at alleviating inequality, like support measures (in short run) human capital interventions long run), should play important compensating role future.