This paper documents that production networks play an essential role in the job search and matching process. We document five facts about worker mobility in production networks using employer–employee data matched with the universe of firm-to-firm transactions for the Dominican Republic: (1) workers move between buyers and suppliers almost twice as much as predicted by standard labour market characteristics, (2) movers between buyers and suppliers experience larger earnings increases than other movers, (3) incumbent workers earnings increase when their firm hires from its buyers or suppliers, (4) firm-to-firm trade increases following supply chain hires, and (5) hiring from buyers or suppliers is associated with stronger firm growth. Survey evidence points to supply chain-specific human capital and better information about job applicants as the main reasons for hiring within the supply chain. These results reveal a new channel through which factors affecting the supply chain, such as international outsourcing or contracting frictions, impact labour markets.

The COVID-19 pandemic could result in large government interventions in the banking industry. To shed light on the possible consequences on markups, we rely on the experience of the Global Financial Crisis and exploit granular data on government interventions in more than 800 banks across 27 countries between 2007 and 2017. Using a multivariate matching method, we find no evidence of an increase in markups. Interventions—especially longer and larger ones—have no significant impact on prices but they increase costs, mostly because of higher loan impairment charges, lowering markups.