IDEAS home Printed from https://ideas.repec.org/a/bla/jregsc/v62y2022i4p1006-1031.html
   My bibliography  Save this article

Lessons from the 2020 Covid recession for understanding regional resilience

Author

Listed:
  • Mark Partridge
  • Seung‐hun Chung
  • Sydney Schreiner Wertz

Abstract

The 2020 Covid‐19 recession differs from past recessions due to the immediate economic collapse, making it a unique setting in which to assess local economic resilience. Using county‐level data, we identify initial effects of the pandemic and accompanying stay‐at‐home orders on consumer spending, unemployment insurance claims, small businesses, and low‐income employment and earnings. We discuss heterogeneity related to pre‐pandemic county characteristics and find differences compared to past recessions. Counties with larger leisure services employment shares fared worse, while counties with less‐educated, younger workforces fared better. We find an ambiguous role of small businesses in contrast with favorable impacts during prior downturns.

Suggested Citation

  • Mark Partridge & Seung‐hun Chung & Sydney Schreiner Wertz, 2022. "Lessons from the 2020 Covid recession for understanding regional resilience," Journal of Regional Science, Wiley Blackwell, vol. 62(4), pages 1006-1031, September.
    • Handle: RePEc:bla:jregsc:v:62:y:2022:i:4:p:1006-1031
    DOI: 10.1111/jors.12584
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jors.12584
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jors.12584?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Elena Bellini & Gianmarco I. P. Ottaviano & Dino Pinelli & Giovanni Prarolo, 2013. "Cultural Diversity and Economic Performance: Evidence from European Regions," Advances in Spatial Science, in: Riccardo Crescenzi & Marco Percoco (ed.), Geography, Institutions and Regional Economic Performance, edition 127, pages 121-141, Springer.
    2. Forsythe, Eliza & Kahn, Lisa B. & Lange, Fabian & Wiczer, David, 2020. "Labor demand in the time of COVID-19: Evidence from vacancy postings and UI claims," Journal of Public Economics, Elsevier, vol. 189(C).
    3. Couch, Kenneth A. & Fairlie, Robert W. & Xu, Huanan, 2020. "The Impacts of COVID-19 on Minority Unemployment: First Evidence from April 2020 CPS Microdata," IZA Discussion Papers 13264, Institute of Labor Economics (IZA).
    4. Robert W. Fairlie, 2020. "The Impact of Covid-19 on Small Business Owners: The First Three Months after Social-Distancing Restrictions," CESifo Working Paper Series 8581, CESifo.
    5. Richard W. Johnson & Barbara Butrica, 2012. "Age Disparities in Unemployment and Reemployment During the Great Recession and Recovery," Issue Briefs 2012-03, Urban Institute, Program on Retirement Policy.
    6. Martin, Philippe & Ottaviano, Gianmarco I P, 2001. "Growth and Agglomeration," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(4), pages 947-968, November.
    7. Dimitris Papanikolaou & Lawrence D W Schmidt, 2022. "Working Remotely and the Supply-Side Impact of COVID-19 [The unprecedented stock market reaction to COVID-19]," The Review of Asset Pricing Studies, Society for Financial Studies, vol. 12(1), pages 53-111.
    8. Georgij Alekseev & Safaa Amer & Manasa Gopal & Theresa Kuchler & JW Schneider & Johannes Stroebel & Nils Wernerfelt, 2020. "The Effects of Covid-19 on U.S. Small Businesses: Evidence from Owners, Managers, and Employees," CESifo Working Paper Series 8578, CESifo.
    9. Seung-hun Chung & Mark D. Partridge, 2019. "Are shocks to human capital composition permanent? Evidence from the Mariel boatlift," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 461-515, December.
    10. Evert Meijers & Martijn Burger & Gilles Duranton, 2016. "Determinants of city growth in Colombia," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 101-131, March.
    11. Stephan J Goetz & Mark D Partridge & Heather M Stephens, 2018. "The Economic Status of Rural America in the President Trump Era and beyond," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 40(1), pages 97-118.
    12. Gilles Duranton & Matthew A. Turner, 2011. "The Fundamental Law of Road Congestion: Evidence from US Cities," American Economic Review, American Economic Association, vol. 101(6), pages 2616-2652, October.
    13. Robert Fairlie, 2020. "The impact of COVID‐19 on small business owners: Evidence from the first three months after widespread social‐distancing restrictions," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(4), pages 727-740, October.
    14. Brad Hershbein & Lisa B. Kahn, 2018. "Do Recessions Accelerate Routine-Biased Technological Change? Evidence from Vacancy Postings," American Economic Review, American Economic Association, vol. 108(7), pages 1737-1772, July.
    15. Coulson, N. Edward & McCoy, Shawn J. & McDonough, Ian K., 2020. "Economic diversification and the resiliency hypothesis: Evidence from the impact of natural disasters on regional housing values," Regional Science and Urban Economics, Elsevier, vol. 85(C).
    16. Humphries, John Eric & Neilson, Christopher A. & Ulyssea, Gabriel, 2020. "Information frictions and access to the Paycheck Protection Program," Journal of Public Economics, Elsevier, vol. 190(C).
    17. Edward Ludwig Glaeser & Albert Saiz, 2003. "The rise of the skilled city," Working Papers 04-2, Federal Reserve Bank of Philadelphia.
    18. Mark D. Partridge & Dan S. Rickman, 2002. "Did The New Economy Vanquish The Regional Business Cycle?," Contemporary Economic Policy, Western Economic Association International, vol. 20(4), pages 456-469, October.
    19. Alexander W. Bartik & Marianne Bertrand & Zoë B. Cullen & Edward L. Glaeser & Michael Luca & Christopher T. Stanton, 2020. "How Are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey," NBER Working Papers 26989, National Bureau of Economic Research, Inc.
    20. George J. Borjas & Hugh Cassidy, 2020. "The Adverse Effect of the COVID-19 Labor Market Shock on Immigrant Employment," NBER Working Papers 27243, National Bureau of Economic Research, Inc.
    21. Tsvetkova, Alexandra & Partridge, Mark D., 2016. "Economics of modern energy boomtowns: Do oil and gas shocks differ from shocks in the rest of the economy?," Energy Economics, Elsevier, vol. 59(C), pages 81-95.
    22. Alexandra Tsvetkova & Mark Partridge & Michael Betz, 2019. "Self-employment effects on regional growth: a bigger bang for a buck?," Small Business Economics, Springer, vol. 52(1), pages 27-45, January.
    23. Seung-hun Chung & Mark D. Partridge, 2019. "Correction to: Are shocks to human capital composition permanent? Evidence from the Mariel boatlift," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(3), pages 517-517, December.
    24. Lewis, Ethan & Peri, Giovanni, 2015. "Immigration and the Economy of Cities and Regions," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 625-685, Elsevier.
    25. Seung-Hun Chung & Min Zhang & Mark D. Partridge, 2020. "Positive feedback in skill aggregation across Chinese cities," Regional Studies, Taylor & Francis Journals, vol. 54(11), pages 1596-1611, November.
    26. Olivia S. Kim & Jonathan A. Parker & Antoinette Schoar, 2020. "Revenue Collapses and the Consumption of Small Business Owners in the Early Stages of the COVID-19 Pandemic," NBER Working Papers 28151, National Bureau of Economic Research, Inc.
    27. Robert P. Bartlett III & Adair Morse, 2020. "Small Business Survival Capabilities and Policy Effectiveness: Evidence from Oakland," NBER Working Papers 27629, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rickman, Dan S. & Wang, Hongbo, 2023. "COVID-19 and Beyond: Economic Outcomes in Republican vs. Democratic States," MPRA Paper 118531, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael D. Noel, 2022. "Competitive survival in a devastated industry: Evidence from hotels during COVID‐19," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(1), pages 3-24, February.
    2. Abel Brodeur & David Gray & Anik Islam & Suraiya Bhuiyan, 2021. "A literature review of the economics of COVID‐19," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1007-1044, September.
    3. Nicola Pierri & Yannick Timmer, 2020. "IT Shields: Technology Adoption and Economic Resilience during the Covid-19 Pandemic," CESifo Working Paper Series 8720, CESifo.
    4. Sabrina T. Howell & Theresa Kuchler & David Snitkof & Johannes Stroebel & Jun Wong, 2021. "Lender Automation and Racial Disparities in Credit Access," NBER Working Papers 29364, National Bureau of Economic Research, Inc.
    5. Sabrina T. Howell & Theresa Kuchler & David Snitkof & Johannes Stroebel & Jun Wong, 2021. "Racial Disparities in Access to Small Business Credit: Evidence from the Paycheck Protection Program," CESifo Working Paper Series 9345, CESifo.
    6. Oikonomou, Myrto & Pierri, Nicola & Timmer, Yannick, 2023. "IT shields: Technology adoption and economic resilience during the COVID-19 pandemic," Labour Economics, Elsevier, vol. 81(C).
    7. Daiji Kawaguchi & Sagiri Kitao & Manabu Nose, 2022. "The impact of COVID-19 on Japanese firms: mobility and resilience via remote work," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(6), pages 1419-1449, December.
    8. Mark Partridge & Alexandra Tsvetkova & Michael Betz, 2021. "Are the most productive regions necessarily the most successful? Local effects of productivity growth on employment and earnings," Journal of Regional Science, Wiley Blackwell, vol. 61(1), pages 30-61, January.
    9. Daniel Graeber & Alexander S. Kritikos & Johannes Seebauer, 2021. "COVID-19: a crisis of the female self-employed," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(4), pages 1141-1187, October.
    10. Cong, Lin William & Yang, Xiaohan & Zhang, Xiaobo, 2021. "SMEs Amidst the Pandemic and Reopening: Digital Edge and Transformation," Applied Economics and Policy Working Paper Series 317045, Cornell University, Department of Applied Economics and Management.
    11. Robert W. Fairlie, 2022. "The Impacts of COVID-19 on Racial Inequality in Business Earnings," NBER Working Papers 30532, National Bureau of Economic Research, Inc.
    12. Mariusz Zieliński, 2022. "The Effect of the COVID-19 Pandemic on the Labor Markets of the Visegrad Countries," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    13. Rachel Atkins & Lisa Cook & Robert Seamans, 2022. "Discrimination in lending? Evidence from the Paycheck Protection Program," Small Business Economics, Springer, vol. 58(2), pages 843-865, February.
    14. Amuedo-Dorantes, Catalina & Borra, Cristina & Wang, Chunbei, 2021. "Asian Discrimination in the Coronavirus Era: Implications for Business Formation and Survival," IZA Discussion Papers 14182, Institute of Labor Economics (IZA).
    15. Couch, Kenneth A. & Fairlie, Robert W. & Xu, Huanan, 2020. "Early evidence of the impacts of COVID-19 on minority unemployment," Journal of Public Economics, Elsevier, vol. 192(C).
    16. Santos, Cezar & Kozeniauskas, Nicholas & Moreira, Pedro, 2020. "Covid-19 and Firms: Productivity and Government Policies," CEPR Discussion Papers 15156, C.E.P.R. Discussion Papers.
    17. Nicholas Bloom & Philip Bunn & Paul Mizen & Pawel Smietanka & Gregory Thwaites, 2020. "The Impact of Covid-19 on Productivity," NBER Working Papers 28233, National Bureau of Economic Research, Inc.
    18. Blanas, Sotiris & Oikonomou, Rigas, 2023. "COVID-induced economic uncertainty, tasks and occupational demand," Labour Economics, Elsevier, vol. 81(C).
    19. Jacob A. Jordaan, 2023. "Firm‐level characteristics and the impact of COVID‐19: Examining the effects of foreign ownership and international trade," The World Economy, Wiley Blackwell, vol. 46(7), pages 1967-1998, July.
    20. Granja, João & Makridis, Christos & Yannelis, Constantine & Zwick, Eric, 2022. "Did the paycheck protection program hit the target?," Journal of Financial Economics, Elsevier, vol. 145(3), pages 725-761.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jregsc:v:62:y:2022:i:4:p:1006-1031. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.