Journal Article

The Great Resignation and the Paycheck Protection Program

Abstract: A prominent feature of the US labor markets during the recovery from the COVID-19 recession was a high level of worker separations in the form of quits. This phenomenon, sometimes referred to as the Great Resignation, cannot be fully explained by the strength of the recovery. We show that firms that employ fewer than 250 individuals played a disproportionately larger role in generating excess quits during this episode. We further argue that the availability of Paycheck Protection Program funds might have prevented some “usual” reallocation from happening early on and thus subsequently created a pent-up demand for labor market reallocation later in the recovery.

Keywords: Covid-19; Paycheck Protection Program; labor market;

Access Documents

File(s): File format is text/html
Description: Full Text


Bibliographic Information

Provider: Federal Reserve Bank of Cleveland

Part of Series: Economic Commentary

Publication Date: 2022-11-09

Volume: 2022

Issue: 15

Pages: 5