Remote Work and Employment Dynamics under COVID-19: Evidence from Canada

In this study, we find that 41 percent of jobs in Canada can be performed remotely, with significant variation across provinces, cities, and industries. We complement this finding with labour microdata and document facts on the relationship between the feasibility of remote work and income inequality, gender, age, and other worker characteristics. We then show that workers in occupations for which the possibility of remote work is less likely experienced larger employment losses between March and April. This relationship also holds for employment losses across cities and (in one of the specifications) across industries. Across provinces, there is a negative link in the February–March 2020 variation.