Dimitris Papanikolaou, Lawrence D.W. Schmidt, 23 July 2020

COVID-19 has massively disrupted the supply side of the world economy, shutting down entire industries. This column analyses how these disruptions affected different types of firms and workers by looking at how effectively different sectors can shift to remote work. While the major policy interventions in the US have treated all types of business as equivalent, industries which are not able to do their work remotely have been hit much harder than business that can. This cross-sectional dispersion shows up across a variety of measures, including changes in employment, revenue projections, likelihood of default, current liquidity, and stock returns. Going forward, aid that targets disrupted sectors may be a more cost-effective means to alleviate the impacts of COVID-19.

Alex Bartik, Zoe Cullen, Edward Glaeser, Michael Luca, Christopher Stanton, 19 July 2020

The COVID-19 crisis has necessitated a rise in remote working, but many challenges to its broader adoption remain. This column uses survey data from thousands of small businesses representing a wide set of industries, firm sizes, and regions across the US to understand how businesses are adjusting to the crisis. It finds that transition to remote working is uneven, with businesses in industries with higher income and better educated employees more likely to transition to remote working. Productivity effects are also uneven, with many firms becoming less productive as a result of the transition.

Cem Özgüzel, Paolo Veneri, Rudiger Ahrend, 15 July 2020

Places differ in the degree to which they can maintain economic activity through remote working in the face of shocks such as the COVID-19 pandemic. This column assesses the capacity of regions in 30 developed economies to shift to remote working during a lockdown. Based on individual-level data on occupations from labour force surveys, it shows that cities – and in particular capitals – typically have a higher share of occupations suitable for remote working. This may offset some of the stronger negative economic impacts of COVID-related policies on cities. Regional disparities in the capacity for remote working also clearly reflect the level of education of the workforce.

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