The Review of Economics and Statistics Vol. 107 No. 1 2025
The Impact of Covid-19 on Productivity
Abstract
We analyze the impact of Covid-19 on productivity using data from an innovative monthly firm survey that asks for quantitative impacts of Covid-19 on inputs and outputs. We find that total factor productivity (TFP) fell by up to 6% during 2020–2021. The overall impact combined large reductions in ‘within-firm’ productivity, with offsetting positive ‘between-firm’ effects as less productive sectors, and less productive firms within them, contracted. Despite these large pandemic effects, firms’ post-Covid forecasts imply surprisingly little lasting impact on aggregate TFP. We also see significant heterogeneity over firms and sectors, with the greatest impacts in those requiring extensive in-person activity.
- DOI
- 10.1162/rest_a_01298
- Volume
- 107
- Issue
- 1
- Pages
- 28-41
- Language
- en
- Sources
- openalex bibtex:phds-export.bib crossref