The Impact of Reduced Commuting on Labor Supply and Household Welfare: A Post-Pandemic Analysis
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Summary:
This paper examines the impact of changes in commuting time on welfare and labor supply in the aftermath of the COVID-19 pandemic. Utilizing data from the American Time Use Survey, we observe a shift in commuting time and working hours across occupations with varying ability of telework after the pandemic. We develop a household model of labor supply that accounts for commuting time, and we characterize how changes in commuting time impact individuals' and spouses' labor supply. We calibrate the model to the data. Our findings reveal that the observed post-pandemic decline in commuting time yields significant welfare gains: between 1.5 to 4.5 percent of consumption equivalents for households where at least one spouse experiences reduced commuting.
Series:
Working Paper No. 2024/094
Frequency:
regular
English
Publication Date:
May 3, 2024
ISBN/ISSN:
9798400274503/1018-5941
Stock No:
WPIEA2024094
Format:
Paper
Pages:
37
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