A new study indicates that higher levels of remote work during the COVID-19 pandemic have resulted in increased rates of employees launching startups. Researchers from various universities examined IP address and LinkedIn data, discovering that approximately 11.6% of new firm establishments post-pandemic can be attributed to remote work arrangements. The analysis also suggests that these entrepreneurial ventures were typically initiated by employees from firms that experienced growth during the pandemic, implying that such developments were largely voluntary. Policymakers and businesses should consider these implications for future remote work policies.
Based on our firm-level estimate, we calibrate that at least 11.6 percent of the post-pandemic increase in new firm entry can be explained by spawning from remote work.
Our analysis focused on workers at firms that continued to grow employment during the pandemic, suggesting these startups were more likely voluntary than driven by layoffs.
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