All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

Jacek Rothert
''Optimal teleworking agreements vs. yearning for normality when vaccine is on the horizon''
( 2021, Vol. 41 No.3 )
During a pandemic, companies may adopt teleworking agreements even if they lower current productivity. If managers (or policymakers) want to project an image of ``return to normality'', completely orthogonal to any economic or health outcomes, the scope of teleworking agreements is lower but constant in a stationary equilibrium. In response to the news about upcoming vaccine, rational managers always increase the scope of teleworking agreements, unless the desire to project the image of ``return to normality'' is sufficiently strong, effectively creating a reopening-smoothing motive. The ``return to normality'' may be premature if managers do not understand Lucas' Critique.
Keywords: Covid-19, teleworking, Lucas' Critique, alternative working arrangements
JEL: M5 - Personnel Economics: General
I1 - Health: General
Manuscript Received : Aug 03 2021 Manuscript Accepted : Sep 18 2021

  This abstract has been downloaded 622 times                The Full PDF of this paper has been downloaded 154298 times