Blocking the Light at the End of the Tunnel? Optimal Teleworking Agreements and Management's Revealed Preferences when Vaccine Is on the Horizon

Abstract

During a pandemic, companies adopt teleworking agreements even if they put zero weight on its workforce welfare, as long as the quality of its future product may be affected by current health outcomes of its workers. News about a vaccine leads to an increase in the scope of teleworking agreements if and only if the management puts a strictly positive weight on its workforce welfare. Ceteris paribus, a rational management would never reduce the scope of teleworking agreements when vaccine is on the horizon. If new safety protocols appear successful in limiting or avoiding the health risks for tasks done on-site (e.g. lack of viral transmission with in-person teaching under a hybrid model), the reduction in the scope of teleworking agreements will be excessive if managers do not understand Lucas' Critique.