Labor Productivity in the Context of Working from Home: An Analysis of the Last Years at the European Union Level

The labor market has changed dramatically under the impact of the last few years when the COVID-19 crisis assumed harsh restrictions and isolation. Although refused in the past by employers in the European Union, working from home has become an increasingly present reality on the labor market during the years of the pandemic. But is working from home productive? Thus, the chapter, through an econometric study, aims to answer this question by analyzing the impact of several variables, implicitly the population employed from home, on labor productivity in the EU27. For the last 2 years covered by the panel data analysis, 2020–2021, the results are indeed favorable to work from home in relation to labor productivity. Thus, the prospect of continuing a work-from-home regime, or a hybrid one, should not raise concerns for European employers.