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Pandemic Layoffs and the Role of Stay-at-Home Orders

Author

Listed:
  • Kudlyak, Marianna

    (Federal Reserve Bank of San Francisco)

  • Wolcott, Erin L.

    (Middlebury College)

Abstract

We compile a novel high-frequency, detailed geographic dataset on mass layoffs from U.S. state labor departments. Using recent advances in difference-in-difference estimation with staggered treatment, we find that locally-mandated stay-at-home orders issued March 16–22, 2020 triggered mass layoffs equal to half a percent of the population in just one week. Our findings contribute to explanations for why job loss in 2020 was catastrophic, yet temporary.

Suggested Citation

  • Kudlyak, Marianna & Wolcott, Erin L., 2024. "Pandemic Layoffs and the Role of Stay-at-Home Orders," IZA Discussion Papers 17139, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17139
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    References listed on IDEAS

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    1. ChaeWon Baek & Peter B. McCrory & Todd Messer & Preston Mui, 2021. "Unemployment Effects of Stay-at-Home Orders: Evidence from High-Frequency Claims Data," The Review of Economics and Statistics, MIT Press, vol. 103(5), pages 979-993, December.
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    5. Goodman-Bacon, Andrew & Marcus, Jan, 2020. "Using Difference-in-Differences to Identify Causal Effects of COVID-19 Policies," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 14(2), pages 153-158.
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    11. Louis-Philippe Beland & Abel Brodeur & Taylor Wright, 2020. "COVID-19, Stay-at-Home Orders and Employment: Evidence from CPS Data," Carleton Economic Papers 20-04, Carleton University, Department of Economics, revised 19 May 2020.
    12. Sumedha Gupta & Laura Montenovo & Thuy Nguyen & Felipe Lozano‐Rojas & Ian Schmutte & Kosali Simon & Bruce A. Weinberg & Coady Wing, 2023. "Effects of social distancing policy on labor market outcomes," Contemporary Economic Policy, Western Economic Association International, vol. 41(1), pages 166-193, January.
    13. Tomaz Cajner & Leland D. Crane & Ryan A. Decker & John Grigsby & Adrian Hamins-Puertolas & Erik Hurst & Christopher Kurz & Ahu Yildirmaz, 2020. "The US Labor Market during the Beginning of the Pandemic Recession," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 51(2 (Summer), pages 3-33.
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    More about this item

    Keywords

    recovery; unemployment; mass layoffs; pandemic; COVID-19;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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