COVID-19 and Labor Supply to Start-up Firms

The COVID-19 pandemic shifted the focus of job-seekers toward larger and more resilient companies. NBER researchers Shai Bernstein of Harvard Business School and Richard Townsend of the University of California, San Diego, in joint work with Ting Xu of the University of Virginia, study job search behavior on the AngelList Talent platform (27907). They find greater relative interest in job postings from larger firms, particularly among searchers with more education and experience, after the onset of the pandemic. Searchers also relaxed their reservation criteria for new positions, becoming more receptive to opportunities that promise lower wages or might require relocation. The findings raise questions about how the pandemic, or other economic downturns, affect the flow of talent to start-up entrepreneurial firms. Bernstein describes these and other findings in the video below. 

Six NBER working papers distributed this week investigate the economic and health impacts of the COVID-19 pandemic and policy responses to it. One reviews historical experience with large budget deficits to assess the potential impact of current fiscal policies on inflation (28195). Two focus on K-12 schooling during the pandemic, one documenting the significance of in-person schooling for facilitating labor market activity by parents (28200), another exploring how text messaging can reinforce on-line learning and boost achievement (28205). A second pair of papers address issues of financial fragility, one describing the share of households that would find it difficult to meet a financial emergency during the pandemic (28207), and another examining different approaches to supporting financially-strained businesses (28211). The final paper outlines several ways in which the pandemic may affect future demand for infrastructure assets such as highways and airports (28215).

More than 325 NBER working papers have presented pandemic-related research. These papers are open access and have been collected for easy reference. Like all NBER papers, they are circulated for discussion and comment, and have not been peer-reviewed. They may be viewed in reverse chronological order or by topic area.