Abstract

During the COVID-19 pandemic, many firms began operating in a working-from-home environment (WFH). This study focuses on the relationship between WFH and small business performance during the pandemic. We built a theoretical framework based on firm profit maximization, compiled an up-to-date (March through November) real-time daily and weekly multifaceted data set, and empirically estimated fixed-effect panel data, fractional logit, and multilevel mixed effects models to test our hypotheses. We find that in states with higher WFH rates, small businesses performed better overall with industry variations, controlling for the local pandemic, economic, demographic, and policy factors. We also find that WFH rates increased even after stay-at-home orders (SHOs) were rescinded. With the ready technology and practice of WFH in the pandemic, our robust empirics confirm our theory and hypotheses and demonstrate WFH as a potential force that may expedite “creative destruction” instance and permanently impact industrial structure and peoples’ work lives.

Plain English summary

The Rise of Working from Home (WFH) as a Silver Lining and “Creative Destruction” in the Pandemic: WFH Helps Small Businesses Perform Better with Industry Variations and Continues to Shine after Stay-at-Home Orders Ended. This study focuses on the role of working from home (WFH) for small business performance during the COVID-19 pandemic. We built a theoretical framework based on firm profit maximization and identified WFH as a rational business choice. We then compiled a real-time multifaceted data set, estimated panel fixed-effect, fractional logit, and multilevel mixed effects models, and find that (1) small businesses in states with higher WFH rates performed better with industry variations, controlling for local pandemic and socioeconomic factors; and (2) WFH rates increased after stay-at-home orders were rescinded. Our study demonstrates WFH as a potential “creative destruction” force that may expedite our technologically ready WFH adoption and permanently impact industrial structure and peoples’ work lives.

中文翻译：

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在家工作：小型企业绩效和COVID-19大流行

摘要

在COVID-19大流行期间，许多公司开始在“在家工作”的环境（WFH）中开展业务。这项研究的重点是大流行期间WFH与小企业绩效之间的关系。我们建立了基于公司利润最大化的理论框架，汇编了最新的（3月至11月）实时每日和每周的多面数据集，并根据经验估计了固定效果面板数据，对数logit和多层混合效果模型检验我们的假设。我们发现，在WFH率较高的州，小型企业的整体表现因行业差异而有所改善，并控制了当地的大流行，经济，人口和政策因素。我们还发现，即使取消了居家定单（SHOs），WFH费率也会增加。借助WFH在大流行中的现成技术和实践，

普通英语摘要

在家工作（WFH）作为一线希望的兴起和大流行中的“创造性破坏”：WFH帮助小型企业更好地应对行业变化，并在留在家中的订单结束后继续发光。这项研究的重点是在COVID-19大流行期间在家工作（WFH）对于小型企业绩效的作用。我们建立了基于公司利润最大化的理论框架，并将WFH确定为合理的业务选择。然后，我们编译了一个实时的多面数据集，估计的面板固定效应，对数分数logit和多层混合效应模型，发现（1）WFH率较高的州的小型企业随着行业变化的表现更好，可以控制本地大流行和社会经济因素；（2）在家中取消订单后，WFH费率增加了。