Since most of the US remains at home, how many jobs can be done remotely?

In a new white paper, Chicago Booth economists found that approximately 34% of US jobs could be done at home. They also estimated that these jobs accounted for 44% of all wages. Credit:

An assessment of the economic impact of the “social distance” measures taken to stop the spread of COVID-19 poses a number of fundamental questions about the modern economy: how many jobs can be done at home? What proportion of the total wage is paid for such work? How do home work opportunities vary across cities or industries?

To answer these questions, Assoc. Professor Jonathan Dingel and Professor Brent Neumann of the Booth School of Business Chicago have conducted a new study to find out how many jobs can be done in at homewhat proportion of the total wage is paid for such work, and how the scope of work at home varies depending on the city and industry.

“Social distances are difficult for everyone, but some people and sectors are disproportionately affected,” said Neumann, economics professor Edward Eagle Brown, who conducts research on international macroeconomics and trade. “Most jobs in finance or insurance have a chance to continue their work in a crisis, as they can be done at home away from others. For almost everyone who works in hotels or restaurants, this is not an option. ”

Analyzing polls about the nature of people's work, the authors classified whether this work can be done at home. The authors then combined these job classifications with information from the Bureau of Labor Statistics on the prevalence of each profession in the aggregate, as well as in individual urban areas and industries.

Since most of the US remains at home, how many jobs can be done remotely?

According to the study, 48% of jobs in Silicon Valley can be performed remotely – more than in any other metropolis. Cape Coral Fort Myers, Florida and Stockton Lodi, California, were at the bottom of the list at 26%. Courtesy: Becker Friedman Institute.

This analysis shows that 34% of US jobs can be done at home. Assuming that all classes include the same hours of work, these jobs account for 44% of all wages (classes that can be done at home usually bring more). They found that there are significant differences across cities.

“Our findings are significant that two-thirds of US jobs cannot be plausibly performed at home,” said Dingel, who is studying the nature of economic activity in neighborhoods, cities, and countries. “Because the COVID-19 pandemic forces us to suspend our full-time economy, some cities are in a better position to cope with the situation than others, given the proportion of their work that can be done from home.”

Living in a big metropolis can have its advantages in the current crisis. A study by Dingel and Neumann shows that more than 40% of jobs in San Francisco, San Jose, Austin and Washington, DC can be done at home, compared with less than 30% in Fort Myers, Grand Rapids. and Las Vegas.

In addition to geographical differencesthey also find great differences between industries. The vast majority of jobs in finance, corporate governance, and professional and scientific services can be done at home. No wonder very few work In agriculture, hotels, shops or restaurants can be done remotely.

Remote control could curb the coronavirus epidemic

Additional Information:
How many jobs can be done at home?… can be done at home /

Since most of the US remains at home, how many jobs can be done remotely? (2020, March 31)
retrieved April 1, 2020

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