The COVID-19 pandemic catalyzed a surge in remote work. We propose a new macroeconomic model in which firms can employ workers off-site. Cheaper or more efficient remote work increases profitability and incentivizes firm entry. This, in turn, raises labor demand and wages which elevates business...

We identify the effects of corporate income tax shocks on key US macroeconomic aggregates. In response to a corporate income tax cut, we find that: (i) labor productivity increases; (ii) entry increases with delay; (iii) exit increases; (iv) total labor increases by more than production labor....