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We lightly modify Eriksson's (1996) model to accommodate the home office in asimple model of endogenous growth. By home office we mean any working activitycarried out away from the workplace which is assumed to be fixed. Due to thestrong mobility restrictions imposed on citizens during the COVID-19 pandemic,we allow the home office to be located at home. At the home office, however, inconsequence of the fear and anxiety workers feel because of COVID-19, theybecome distracted and spend less time working. We show that in the long run,the intertemporal elasticity of substitution of the home-office labor issufficiently small only if the intertemporal elasticity of substitution of thetime spent on distracting activities is small enough also.

The Home Office in Times of COVID-19 Pandemic and its impact in the Labor Supply