This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. AEA Papers and Proceedings
  4. May 2021
  5. Sectoral Effects of Social Distancing

AEA Papers and Proceedings

ISSN 2574-0768 (Print) | ISSN 2574-0776 (Online)

Menu

Sectoral Effects of Social Distancing

  • Jean-Noël Barrot
  • Basile Grassi
  • Julien Sauvagnat
AEA Papers and Proceedings
vol. 111, May 2021
(pp. 277–81)
Download Full Text PDF

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.

Citation

Barrot, Jean-Noël, Basile Grassi, and Julien Sauvagnat. 2021. "Sectoral Effects of Social Distancing." AEA Papers and Proceedings, 111: 277–81. DOI: 10.1257/pandp.20211108

Additional Materials

JEL Classification

  • I12 Health Behavior
  • I18 Health: Government Policy; Regulation; Public Health
  • L51 Economics of Regulation
  • L16 Industrial Organization and Macroeconomics: Industrial Structure and Structural Change; Industrial Price Indices
  • E23 Macroeconomics: Production