Working from a distance: Productivity dispersion and labor reallocation

Arbeitspapier

Following the shocks of the COVID-19 pandemic, the economy may be significantly changed relative to the pre-pandemic world. One critical shift induced by the COVID- 19 pandemic is a need for physical distance (at least 6 feet apart) between workers and customers. In this study, we examine the impacts of social distancing in the workplace on employment and productivity across industries. Using our constructed measure of adaptability to social distancing, we empirically find that industries that are more adaptive to social distancing had less decline in employment and productivity during the pandemic. Using this empirical evidence, our model predicts that employment and productivity dispersion would induce labor reallocation across sectors, while imperfect labor mobility may result in a long road to economic recovery.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ISER Discussion Paper ; No. 1163

Classification and Topics

• Classification: Wirtschaft ; Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity ; Macroeconomics: Consumption, Saving, Production, Employment, and Investment: Forecasting and Simulation: Models and Applications ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: COVID-19 ; social distancing ; productivity ; labor reallocation ; economicrecovery

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Gu, Jingping ; Koh, Dongya ; Liu, Andrew
• Event: Veröffentlichung
• (who): Osaka University, Institute of Social and Economic Research (ISER)
• (where): Osaka
• (when): 2022

Further information

• Handle: http://hdl.handle.net/10419/263300
• Last update: 10.03.2025, 11:41 AM CET