Working Remotely and the Supply-side Impact of Covid-19 / Dimitris Papanikolaou, Lawrence D.W. Schmidt.

Format:

Book

Author/Creator:

Papanikolaou, Dimitris.

Contributor:

National Bureau of Economic Research.

Schmidt, Lawrence D.W.

Series:

Working Paper Series (National Bureau of Economic Research) no. w27330.

NBER working paper series no. w27330

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2020.

Summary:

We analyze the supply-side disruptions associated with Covid-19 across firms and workers. To do so, we exploit differences in the ability of workers across industries to work remotely using data from the American Time Use Survey (ATUS). We find that sectors in which a higher fraction of the workforce is not able to work remotely experienced significantly greater declines in employment, significantly more reductions in expected revenue growth, worse stock market performance, and higher expected likelihood of default. In terms of individual employment outcomes, lower-paid workers, especially female workers with young children, were significantly more affected by these disruptions. Last, we combine these ex-ante heterogeneous industry exposures with daily financial market data to create a stock return portfolio that most closely replicate the supply-side disruptions resulting from the pandemic.

Notes:

Print version record

June 2020.