Work from Home and Mental Health: Evidence from the First Lockdown

The COVID-19 pandemic triggered widespread lockdown measures, including a sudden and substantial increase in working from home arrangements. While intended to reduce virus transmission, these measures may have had unintended consequences for mental health. Remote work limits in-person interactions and alters work-life boundaries, potentially influencing psychological well-being. However, empirical research on the mental health effects of working from home -especially under involuntary conditions- is still limited.

This study investigates the impact of working from home on mental health during the first lockdown in Germany. Specifically, it aims to differentiate between selection effects (i.e., individuals who choose working from home based on their circumstances) and causal effects (i.e., the mental health consequences of working from home itself). The goal is to understand whether working from home, when imposed rather than voluntarily chosen, negatively affects mental well-being.

We use data from the Mannheim Corona Study (MCS), which collected high-frequency panel data from a representative sample of the German population during the first lockdown (March-July 2020). The analysis focuses on employed individuals and excludes those not working. We create a binary working from home indicator and analyze its association with four mental health measures: two indicators of depressive symptoms, one of loneliness, and one of social interaction frequency. Both pooled linear regressions and fixed effects models are employed to estimate associations while accounting for confounders and unobserved heterogeneity.

Descriptive statistics reveal that working from home was more common among individuals with higher income and education, reflecting a socioeconomic selection effect. Pooled regression results show a significant association between working from home and increased loneliness, depressive symptoms, and reduced social interaction. These associations persist even after controlling for sociodemographic characteristics. Fixed effects panel regressions-focusing on within-individual changes-confirm a significant, though smaller, negative effect of working from home on mental health, particularly regarding loneliness and loss of interest. This strengthens the evidence for a causal link between working from home and reduced psychological well-being, independent of pre-existing personal characteristics.

The findings suggest that even privileged individuals working from home experienced a decline in mental health, highlighting the psychological costs of reduced social interaction during the lockdown. Limitations include the lack of pre-pandemic mental health data and the inability to distinguish between voluntary and enforced working from home beyond the lockdown context. Also, the relatively short observation period limits insights into long-term adaptation.

Health professionals should consider the mental health risks associated with remote work settings, especially in times of enforced isolation. Early identification of at-risk individuals and targeted support strategies may help prevent deterioration in mental well-being among remote workers.

Policy makers should balance infection control measures with their broader psychosocial impacts. If remote work becomes a long-term strategy, accompanying mental health support mechanisms should be institutionalized. Flexibility in workplace options may help mitigate adverse psychological effects.

Future studies should explore how specific home-working conditions (e.g., workspace quality, household composition) moderate mental health outcomes. Longitudinal research beyond the lockdown period is necessary to assess the persistence and reversibility of these effects. Evaluating interventions that support mental health in remote work settings is also crucial.