Employment and Teleworking in the Argentine Tourism Sector: a Case Study Based on the COVID-19 Pandemic

Abstract

We analyze the viability of teleworking in the tourism sector in Argentina by using the COVID-19 shock on employment as a case study. We pay special attention to the tourism sector and its sub-sectors because they comprise activities with low teleworking potential and high informality rates, which could further condition the effective implementation of new work arrangements, such as remote work. By using estimates of teleworking potential at the sectoral level, we study its relationship with the evolution of employment during the quarantines implemented in the face of the COVID-19 pandemic in Argentina. We find a positive effect of teleworking potential on employment in the tourism subsectors, such as food and accommodation and travel agencies activities, but more pronounced in the other services subsectors (sports, cultural, and entertainment service activities). This suggests that, despite having a low telework potential, certain tourism activities could be performed remotely. Surprisingly, we find that teleworking potential had a positive effect on employment in some tourism subsectors only for informal workers.