Norwegian and US Policies Alleviate Business Vulnerability Due to the Covid-19 Shock Equally Well

Alstadsæter, Annette; Bjørkheim, Julie Brun; Kopczuk, Wojciech; Økland, Andreas

doi:10.3386/w27637

Cited by 18 publications

(19 citation statements)

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“…The government strengthened the program with effect on March 20 by granting 100% pay, capped at 31,000 NOK per month, for the first 20 days. From day 21 on, the part of the income below 25,000 (around 2,300) is replaced at 80%, whereas the coverage remains unchanged for the other parts of the income (Alstadsæter et al, 2020a). Furthermore, the minimum required reduction in working hours decreased to 40%.…”

Section: Institutional Backgroundmentioning

confidence: 99%

Labor market effects of COVID‐19 in Sweden and its neighbors: Evidence from administrative data

Juranek

Paetzold

Winner

et al. 2021

Kyklos

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This paper studies the labor market effects of non‐pharmaceutical interventions (NPIs) to combat the COVID‐19 pandemic. We focus on the Nordic countries which showed one of the highest variations in NPIs despite having similar community spread of COVID‐19 at the onset of the pandemic: While Denmark, Finland and Norway imposed strict measures (‘lockdowns’), Sweden decided for much lighter restrictions. Empirically, we use novel administrative data on weekly new unemployment and furlough spells from all 56 regions of the Nordic countries to compare the labor market outcomes of Sweden with the ones of its neighbors. Our evidence suggests that the labor markets of all countries were severely hit by the pandemic, although Sweden performed slightly better than its neighbors. Specifically, we find the worsening of the Swedish labor market to occur around 2 to 3 weeks later than in the other Nordic countries, and that its cumulative sum of new unemployment and furlough spells remained significantly lower (about 20–25%) during the time period of our study (up to week 21 of 2020).

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Section: Institutional Backgroundmentioning

confidence: 99%

Labor market effects of COVID‐19 in Sweden and its neighbors: Evidence from administrative data

Juranek

Paetzold

Winner

et al. 2021

Kyklos

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“… 5 Alstadsaeter et al ( 2020 ) use Norwegian administrative data to simulate the effects of Norwegian government support and the US PPP program to help businesses during the COVID-19 pandemic and find that these policies supporting payroll can be partly effective. …”

mentioning

confidence: 99%

Did the Paycheck Protection Program and Economic Injury Disaster Loan Program get disbursed to minority communities in the early stages of COVID-19?

Fairlie

Fossen

2021

Small Bus Econ

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Social distancing restrictions and health- and economic-driven demand shifts from COVID-19 shut down many small businesses with especially negative impacts on minority owners. Is there evidence that the unprecedented federal government response to help small businesses—the Paycheck Protection Program (PPP) and the related COVID-19 Economic Injury Disaster Loans (EIDL)—which had a stated goal of helping disadvantaged groups, was disbursed evenly to minority communities? In this descriptive research note, we provide the first detailed analysis of how the 2020 PPP and EIDL funds were disbursed across minority communities in the country. From our analysis of data on the universe of loans from these programs and administrative data on employer firms, we generally find a slightly positive relationship between PPP loan receipt per business and the minority share of the population or businesses, although funds flowed to minority communities later than to communities with lower minority shares. PPP loan amounts per employee, however, are negatively related to the minority share of the population. The EIDL program, in contrast, both in numbers per business and amounts per employee, was distributed positively to minority communities.

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“…Some papers have documented that more economically vulnerable individuals-such as those with lower income and educational attainment [Cajner et al, 2020;Chetty et al, 2020;Shibata, 2020], minorities [Fairlie et al, 2020], immigrants Borjas and Cassidy [2020], and women [Alon et al, 2020;Del Boca et al, 2020;Papanikolaou and Schmidt, 2020]-have been impacted more harshly during the early phases of the COVID-19 pandemic, both in the US and other countries [Alstadsaeter et al, 2020;Béland et al, 2020]. One reason is that lower paid workers are often unable to perform their jobs while working from home [Dingel and Neiman, 2020;Gottlieb et al, 2020].…”

Section: Related Literaturementioning

confidence: 99%

IT Shields: Technology Adoption and Economic Resilience during the COVID-19 Pandemic

Pierri

2020

SSRN Journal

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We study the economic effects of information technology (IT) adoption during the COVID-19 pandemic. Using data on IT adoption covering almost three million establishments in the US, we find that technology adoption can partly shield the economy from the impact of the pandemic. In areas where firms adopted more IT the unemployment rate rose less in response to social distancing. Our estimates imply that if the pandemic had hit the world 5 years ago, the resulting unemployment rate would have been 2 percentage points higher during April and May 2020 (16% vs. 14%), due to the lower availability of IT. Local IT adoption mitigates the labor market consequences of the pandemic for all individuals, regardless of gender and race, except those with the lowest level of educational attainment. JEL-Codes: G210, G140.

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Norwegian and US Policies Alleviate Business Vulnerability Due to the Covid-19 Shock Equally Well

Cited by 18 publications

References 0 publications

Labor market effects of COVID‐19 in Sweden and its neighbors: Evidence from administrative data

Labor market effects of COVID‐19 in Sweden and its neighbors: Evidence from administrative data

Did the Paycheck Protection Program and Economic Injury Disaster Loan Program get disbursed to minority communities in the early stages of COVID-19?

IT Shields: Technology Adoption and Economic Resilience during the COVID-19 Pandemic

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