Covid, Teleworking and Inequality

Abstract

This study presents an agent based model with two sectors differing for their location in the economy and workers sequentially searching for a job. In this framework we test the effects on workers’ disposable income of teleworking introduction, with different intensity by sectors, to verify if working organizational features may exacerbate the negative effects post-pandemic asymmetric shocks. Results show that workers employed in central locations of the economy gain a wage advantage compared to those finding job in peripheral positions. The differential in disposable income for the first group increases if in the central sector teleworking is introduced at higher intensity compared to the peripheral one. Sectors already penalized by closures and social distancing measures can face further inequalities in terms of disposable income for organizational and technological bounds.