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Economic implications of working from home

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Commuters riding an SMRT train after office hours pass by a public housing estate in Singapore. As the number of people working from home increases, a smaller proportion of the population will commute to work each day.   © Reuters

Where we work and how we work is changing. Most people spend the majority of their waking hours today either at or travelling to and from work. If where and how we spend most of our time is changing, there must be significant implications for our economic behavior. A lot of important economic assumptions will alter in the years ahead.

In many developed economies the number of people working from home has increased significantly. In the United States, up to a quarter of the workforce work from home for at least some of their week. Technology has, of course, made telecommuting a lot easier to accomplish, either on a full-time or on a part-time basis.

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