The lockdowns due to COVID-19 have underscored the degree to which some people are better able to work from home than others because of their occupations, home situations, or other factors. And what is true of individuals is also true of regions and nations: Some countries are in a better position than others to thrive while complying with social distancing.
Our MIT research team recently constructed an index that analyzes the economic impact of remote work in 30 countries. The results show that developed economies will likely do better — primarily those with a mix of industries and occupations that are more conducive to working from home, along with supportive conditions such as internet access and high-quality connectivity.
At both the macro and micro levels, these findings have clear implications for government policy makers and business leaders. Even as countries reopen their economies, there is a reasonable chance of subsequent shutdowns due to infection waves in the future — or to other natural disasters after COVID-19 has waned. Moreover, many companies are considering a permanent shift to working from home as either a requirement or an option. Whether by choice or because of public health considerations, the shift in where work gets done is real, and governments must understand the implications and take steps to position their economies accordingly.