COVID-19 Is a Persistent Reallocation Shock

Jose Maria Barrero, Nicholas Bloom, Steven Davis and Brent Meyer

AEA Papers and Proceedings, 2021, vol. 111, 287-91

Abstract: Drawing on data from the firm-level Survey of Business Uncertainty, we present three pieces of evidence that COVID-19 is a persistent reallocation shock. First, rates of excess job and sales reallocation over 24-month periods (looking back 12 months and ahead 12 months) have risen sharply since the pandemic struck, especially for sales. 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 for employees to work from home.

JEL-codes: D22 I12 J21 J23 L25 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (32)

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Working Paper: COVID-19 Is a Persistent Reallocation Shock (2021)
Working Paper: COVID-19 Is a Persistent Reallocation Shock (2021)
Working Paper: COVID-19 Is a Persistent Reallocation Shock (2021)
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DOI: 10.1257/pandp.20211110

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