Discussion Paper

How much lockdown policies contribute to local unemployment? Evidence from the first and second waves of COVID-19


Abstract: Did people reduce their social interactions as a result of the pandemic, restrictive lockdown policies, or both? What was the impact of reduced social interactions on local employment? Importantly, why did unemployment spike during the first wave of the pandemic, but gradually decline thereafter, even though the outbreak was much more severe during the second wave? In this note, we attempt to answer these questions by exploiting newly available data on hours worked among small firms at the industry-county-state-week level.

https://doi.org/10.17016/2380-7172.2903

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2021-05-24

Number: 2021-05-24-1