The Impact of Remote Work

Working from home became necessary during the COVID-19 pandemic. According to a survey done by the Stanford Institute for Economic Policy Research during May of 2020, 42% of all US workers worked from home and accounted for two-thirds of the nation’s gross domestic product. Therefore, work from home has become a feasible economic development strategy at the onset of COVID-19. This study gauges the contribution of workers from home in Indiana in 2021 by using the Regional Economic Modeling, Inc. (REMI) general equilibrium model. Results indicate that the roughly 222,000 workers from home in the state contributed to a little more than 493,000 jobs across more than 10 industries. In addition, these workers added close to $54 million to the state’s GDP that year. To fully maximize the impact of these workers, some strategies may include communities adapting work from home incentives, better and more affordable broadband, adequate facilities for workers from home (like co-working spaces), matching employers with workers from home, and offering work from home-related skills through training and certifications.