%0 Report %A Ketter, Laura %A Morris, Todd %A Yu, Lizi %T A New Equilibrium: COVID-19 Lockdowns and WFH Persistence %D 2025 %8 2025 Jun %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 17975 %U https://www.iza.org/publications/dp17975 %X 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. %K COVID-19 %K persistence %K WFH %K work from home %K lockdowns %K habit formation