and Zhu, F. (2020), ‘Gender inequality in research productivity during the Covid-19 pandemic’ Harvard Business School Working Paper 20-129 DeFillippis, E, Impink, M, SIngell, M, Polzer, J and Sadun, R (2020). ‘Collaborating during coronavirus: the impact of Covid-19 on the nature of work’ NBER Working Paper 27612 10  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  10  Dingel, J and Neiman, B (2020), ‘How many jobs can be done at home?’ Covid Economics, Issue 1, CEPR Press. Dutcher, E G (2012), “The Effects of Telecommuting on Productivity: An Experimental Examination. The Role of Dull and Creative Tasks.”, Journal of Economic Behavior & Organization 84(1): 55-363. Engaging Business (2020). ‘Engaging Business Annual Report’ Felstead, A and Reuschke, D. (2020) ‘Homeworking in the UK: Before and during the 2020 Lockdown.’ Wales Institute of Social & Economic Research, Data & Methods working paper. Gajendran, R and Harrison, D (2007). ‘The Good, the Bad, and the Unknown About Telecommuting: MetaAnalysis of Psychological Mediators and Individual Consequences’ Journal of Applied Psychology, vol. 92, No. 6 Haldane, A (2018a), ‘Ideas and Institutions – A Growth Story’. Available at https://www.bankofengland.co.uk/speech/2018/andy-haldane-speech-given-at-the-oxford-guild-society Haldane (2018b). ‘The creative economy’. Available at https://www.bankofengland.co.uk//media/boe/files/speech/2019/the-creative-economy-speech-by-andy-haldane.pdf Haldane (2020). ‘The health, wealth and happiness of nations’. Available at https://www.bankofengland.co.uk/speech/2020/the-health-wealth-and-happiness-of-nations-slides-by-andyhaldane ISC (2019). ‘UK Skills Mismatch in 2030’ Industrial Strategy Council Report. Mas, A and Pallais, A (2017) ‘Valuing alternative work arrangement’ American Economic Review, vol 107, No.

Just as the short-term productivity cost of an abrupt shift to home-working might be overstated, so too might the short-term happiness benefits. In particular, let me discuss two longer-term consequences of the shift to home-working whose effects may not yet be fully visible but which could, over time, detract from both our productivity and our happiness at work. The Effects on Creativity and Relationships These two factors are working relationships (or what economists sometimes call social capital) and workplace creativity (or what economists call intellectual capital). Modern economic theory, and a growing body of empirical evidence, gives both factors a prominent role in explaining why individuals thrive, economies grow and societies succeed.20 It is well-established that creativity fosters innovation and that in turn fuels economic growth. That was the story of the Industrial Revolution. What is new is our understanding of how the work environment plays a crucial role in nurturing creativity.21 For example, the absence of distraction and noise is one important factor fostering creativity. Being in “flow” requires a degree of cognitive tunnelling.22 For many people, homeworking provides that quieter, less distracting environment where tunnelling is easier and creativity fostered. 19  Gajendran and Harrison (2007). Haldane (2018a, 2020). Haldane (2018b). 22 Newport (2014) terms this ‘tunnelling’ as deep work and provides a comprehensive overview of the concepts and research. 20 21  7  All speeches are available online at www.bankofengland.co.uk/news/speeches and @BoE_PressOffice  7  But lack of distraction and noise is not always and everywhere a good thing, including the creativity.