Work-from-Home, Labour Market Disruption, and Productivity: Canadian Evidence

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Abstract

This article uses the COVID-19 pandemic as a natural experiment to study the labour market and productivity implications of forced work-from-home (WFH) across Canadian industries. Using a WFH suitability index matched to Canadian industry data, it documents that industries with higher WFH capacity experienced smaller employment declines during the pandemic. At the macro level, the forced WFH experiment provides evidence on productivity implications of remote work — with mixed findings across industry sectors and skill levels — and discusses longer-run implications for labour market structure.

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