Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/261322 
Year of Publication: 
2022
Series/Report no.: 
GLO Discussion Paper No. 1131
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
How do pandemics affect for-profit and not-for-profit organizations differently? To address this question, we analyze optimal lockdowns in a two-sector continuous-time individual-based mean-field epidemiological model. We uncover a unique solution that depends on network structure, lockdown effectiveness, and the planner's tolerable infection incidence. Using unique data on nursing home networks in the United States, we calibrate the model and jointly quantify state-level lockdown effectiveness and preference for enforcing stringent containment strategies during the COVID-19 pandemic. We also empirically validate simulation results derived from the theoretical analyses. We find that for-profit nursing homes experience higher COVID-19 death rates than not-for-profit nursing homes. In addition, this differential health effect increases with lockdown effectiveness.
Subjects: 
Pandemics
Profits
Social networks
Lockdown effectiveness
Nursing Homes
JEL: 
D85
E61
H12
I18
J14
Document Type: 
Working Paper

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