ABSTRACT

COVID-19 is a Persistent Reallocation Shock   [open pdf - 0B]

From the Abstract: "Drawing on data from the firm-level Survey of Business Uncertainty, we present three pieces of evidence that COVID-19 [coronavirus disease 2019] is a persistent reallocation shock. First, rates of excess job and sales reallocation over 24-month periods have risen sharply since the pandemic struck, especially for sales. We compute these rates by aggregating over monthly firm-level observations that look back 12 months and ahead 12 months. Second, as of December 2020, firm-level forecasts of sales revenue growth over the next year imply a continuation of recent changes, not a reversal. Third, COVID-19 shifted relative employment growth trends in favor of industries with a high capacity of employees to work from home, and against those with a low capacity."

Report Number:
Becker Friedman Institute for Research in Economics Working Paper No. 2021-02
Author:
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Date:
2021-01-02
Series:
Copyright:
Becker Friedman Institute for Research in Economics
Retrieved From:
Becker Friedman Institute for Research in Economics: https://bfi.uchicago.edu/
Media Type:
application/pdf
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