Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/244306 
Year of Publication: 
2021
Series/Report no.: 
Working Paper No. 2021-3
Publisher: 
Federal Reserve Bank of Atlanta, Atlanta, GA
Abstract: 
Drawing on data from the firm-level Survey of Business Uncertainty, we present three pieces of evidence that COVID-19 is a persistent reallocation shock. First, rates of excess job and sales reallocation over 24-month periods have risen sharply since the pandemic struck, especially for sales. We compute these rates by aggregating over monthly firm-level observations that look back 12 months and ahead 12 months. Second, as of December 2020, firm-level forecasts of sales revenue growth over the next year imply a continuation of recent changes, not a reversal. Third, COVID-19 shifted relative employment growth trends in favor of industries with a high capacity of employees to work from home and against those with a low capacity.
Subjects: 
COVID-19
reallocation shock
business expectations
working from home
Survey of Business Uncertainty
JEL: 
D22
D84
E23
E24
J21
J62
J63
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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