@TechReport{iza:izadps:dp17975, author={Ketter, Laura and Morris, Todd and Yu, Lizi}, title={A New Equilibrium: COVID-19 Lockdowns and WFH Persistence}, year={2025}, month={Jun}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={17975}, url={https://www.iza.org/publications/dp17975}, abstract={This paper documents a robust link between COVID-19 lockdowns and the uptake and persistence of working from home (WFH) practices. Exploiting rich longitudinal data, we use a difference-in-differences strategy to compare office workers in three heavily locked-down Australian states to similar workers in less affected states. Locked-down workers sustain 43% higher WFH levels through 2023 — 0.5 days per week — with a monotonic dose–response relationship. Persistence is driven by adjustments on both sides of the labor market: employers downsize office space and open remote/hybrid positions, while employees relocate away from city centers and invest in home offices and technology.}, keywords={COVID-19;persistence;WFH;work from home;lockdowns;habit formation}, }