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STEM Employment Resiliency During Recessions: Evidence from the COVID-19 Pandemic

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  • James C. Davis
  • Holden A. Diethorn
  • Gerald R. Marschke
  • Andrew J. Wang

Abstract

Employment in STEM occupations suffered smaller peak-to-trough percentage declines than non-STEM occupations during the Great Recession and COVID-19 recession, suggesting a relative resiliency of STEM employment. We exploit the sudden peak-to-trough declines in STEM and non-STEM employment during the COVID-19 recession to measure STEM recession-resiliency, decomposing our difference-in-differences estimate into parts explained by various sources. We find that STEM knowledge importance on the job explains the greatest share of STEM employment resiliency, and that workers in non-STEM occupations who nonetheless use STEM knowledge experienced better employment outcomes. STEM employment resiliency may explain the mild effects of COVID-19 on innovative activity.

Suggested Citation

  • James C. Davis & Holden A. Diethorn & Gerald R. Marschke & Andrew J. Wang, 2021. "STEM Employment Resiliency During Recessions: Evidence from the COVID-19 Pandemic," NBER Working Papers 29568, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29568
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    Cited by:

    1. Wei Yang Tham & Joseph Staudt & Elisabeth Ruth Perlman & Stephanie D. Cheng, 2024. "Scientific Talent Leaks Out of Funding Gaps," Papers 2402.07235, arXiv.org.

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    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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