Vacancy posting, firm balance sheets, and pandemic policy

David Van Dijcke, Marcus Buckmann (), Arthur Turrell and Tomas Key ()
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Marcus Buckmann: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH
Tomas Key: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH

No 1033, Bank of England working papers from Bank of England

Abstract: We assess how balance sheets propagated labour demand shocks during Covid-19 using novel matched data on firms and online job postings. Exploiting regional and firm-level variation in three pandemic policies in the UK, we find that financially healthy firms increased vacancies more in response to positive shocks. Less-leveraged firms and firms with higher credit scores increased postings more in response to the Eat Out to Help Out’s local demand subsidies and after receiving a Bounce Back Loan Scheme loan, respectively. These findings complement the link between leverage and employment losses in response to negative shocks.

Keywords: Covid-19; recession; vacancies; Indeed; job postings; job ads; heterogeneity; firm; firm-level; balance sheets; industry; big data; alternative data; labour market; natural language processing (search for similar items in EconPapers)
JEL-codes: C50 D20 G30 H10 J20 J60 (search for similar items in EconPapers)
Pages: 55 pages
Date: 2023-07-21
New Economics Papers: this item is included in nep-bec, nep-big, nep-eur, nep-ger and nep-lma
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Persistent link: https://EconPapers.repec.org/RePEc:boe:boeewp:1033

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