The impact of Covid-19 on productivity

Nicholas Bloom, Philip Bunn (), Paul Mizen, Pawel Smietanka () and Gregory Thwaites
Additional contact information
Philip Bunn: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH
Pawel Smietanka: Deutsche Bundesbank

No 900, Bank of England working papers from Bank of England

Abstract: We analyse the impact of Covid-19 on productivity using data from an innovative monthly firm survey panel that asks for quantitative impacts of Covid on inputs and outputs. We find total factor productivity (TFP) fell by up to 5% during 2020–21. The overall impact combined large reductions in ‘within-firm’ productivity, with an offsetting positive ‘between-firm’ effects as less productive sectors, and less productive firms within them, contracted. Despite these large pandemic effects, firms’ post-Covid forecasts imply surprisingly little lasting impact on aggregate TFP. We also see significant heterogeneity over firms and sectors, with the greatest impacts in those requiring extensive in-person activity. We also ask about unmeasured inflation in the form of deteriorating product quality, finding an additional 1.3% negative impact on TFP.

Keywords: Productivity; reallocation; Covid-19; growth (search for similar items in EconPapers)
JEL-codes: C83 D24 D84 E24 E32 O47 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2020-12-21, Revised 2022-02-09
New Economics Papers: this item is included in nep-bec, nep-cse, nep-eff, nep-hrm, nep-ino and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: The Impact of Covid-19 on Productivity (2025)
Working Paper: The impact of Covid-19 on productivity (2023)
Working Paper: The impact of Covid-19 on productivity (2023)
Working Paper: The impact of COVID-19 on productivity (2022)
Working Paper: The Impact of Covid-19 on Productivity (2020)
Working Paper: The impact of Covid-19 on productivity (2020)
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