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Sectoral Effects of Social Distancing

Author

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  • Jean-Noël Barrot
  • Basile Grassi
  • Julien Sauvagnat

Abstract

The outbreak of the COVID-19 virus has led many states to take the drastic measures of social distancing. Using US executive order, occupation, and survey data, we measure the fall in labor supply due to these measures. Starting from a model of production networks, we analyze the sectoral effects of these labor shocks for the United States. We find that nonlinearities in the production network account for around half of the drop in GDP associated to the implementation of social distancing measures. The model also generates realistic dispersion in sectoral output change.

Suggested Citation

  • Jean-Noël Barrot & Basile Grassi & Julien Sauvagnat, 2021. "Sectoral Effects of Social Distancing," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 277-281, May.
    • Handle: RePEc:aea:apandp:v:111:y:2021:p:277-81
    DOI: 10.1257/pandp.20211108
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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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