The economic impact of social distancing: Evidence from state-collected data during the 1918 influenza pandemic

Benjamin Bridgman and Ryan Greenaway-McGrevy

Explorations in Economic History, 2023, vol. 90, issue C

Abstract: What are the long-run economic impacts of the policy responses to control pandemics? We investigate this question by exploiting state-collected data spanning one of the most consequential global pandemics in centuries, the 1918 influenza pandemic. Specifically, we use a difference-in-differences framework to examine the effects of non-pharmaceutical interventions (NPIs), ultimately finding no long-run impact of NPIs on employment, positive or negative. Employment trends prior to 1918 suggest that World War One is an important confounding factor in analyses of the pandemic, since cities with tighter NPIs grew rapidly between 1914 and 1918. We identify new control variables that account for war production and find that social distancing did not have long run employment impacts. The evidence underscores the importance of accounting for confounding economic and policy factors for understanding the impact of pandemics on economic outcomes.

Keywords: Pandemics; 1918 influenza; Non-pharmaceutical; Interventions; Employment (search for similar items in EconPapers)
JEL-codes: I18 N12 O47 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:exehis:v:90:y:2023:i:c:s0014498323000256

DOI: 10.1016/j.eeh.2023.101531

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