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Pandemics, Global Supply Chains, and Local Labor Demand: Evidence from 100 Million Posted Jobs in China

Author

Listed:
  • Hanming Fang

    (University of Pennsylvania)

  • Chunmian Ge

    (South China Uni-versity of Technology)

  • Hanwei Huang

    (City University of Hong Kong)

  • Hongbin Li

    (Stanford University)

Abstract

This paper studies how the COVID-19 pandemic has a?ected labor de-mand using over 100 million posted jobs on one of the largest online plat-forms in China. Our data reveals that, due to the e?ects of the pandemic both in China and abroad, the number of newly posted jobs within the ?rst 13 weeks after the Wuhan lockdown on January 23, 2020 was about one third lower than that of the same lunar calendar weeks in 2018 and 2019. Using econometric methods, we show that, via the global supply chain, COVID-19 cases abroad and in particular pandemic-control policies by foreign govern-ments reduced new job creations in China by 11.7%. We also ?nd that Chinese ?rms most exposed to international trade outperformed other ?rms at the beginning of the pandemic but underperformed during recovery as the Novel Coronavirus spread throughout the world.

Suggested Citation

  • Hanming Fang & Chunmian Ge & Hanwei Huang & Hongbin Li, 2020. "Pandemics, Global Supply Chains, and Local Labor Demand: Evidence from 100 Million Posted Jobs in China," PIER Working Paper Archive 20-035, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    • Handle: RePEc:pen:papers:20-035
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    Citations

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    Cited by:

    1. Erik Braun & Emese Braun & András Gyimesi & Zita Iloskics & Tamás Sebestyén, 2023. "Exposure to trade disruptions in case of the Russia–Ukraine conflict: A product network approach," The World Economy, Wiley Blackwell, vol. 46(10), pages 2950-2982, October.
    2. Gong, Da & Shang, Zhuocheng & Su, Yaqin & Yan, Andong & Zhang, Qi, 2024. "Economic impacts of China's zero-COVID policies," China Economic Review, Elsevier, vol. 83(C).
    3. Sebestyén, Tamás & Szabó, Norbert & Braun, Emese & Bedő, Zsolt, 2024. "Lokális reziliencia számítása térbeli általános egyensúlyi modell felhasználásával [Measuring local resilience with a spatial computable general equilibrium model]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 1222-1253.
    4. Hu, Jiayin & Wang, Xuan & Yang, Qingxu & Yi, Junjian, 2024. "Corrigendum to “Gender disparities in the labor market during COVID-19 lockdowns: Evidence from online job postings and applications in China” [Journal of Economic Behavior & Organization 223 (2024), 199-215]," Journal of Economic Behavior & Organization, Elsevier, vol. 228(C).
    5. Heiwai Tang & Xiuxiu Zheng, 2024. "How did China's zero Covid policy affect its exports?," Review of International Economics, Wiley Blackwell, vol. 32(2), pages 545-573, May.
    6. Zeng, Xiangquan & Chu, Shuai & Chen, Xuan, 2025. "China's labor market demand in the shadow of COVID-19: Evidence from an online job board," Journal of Asian Economics, Elsevier, vol. 97(C).
    7. Zeng, Xiangquan & Chu, Shuai & Chen, Xuan, 2022. "China's Labor Market Demand in the Shadow of COVID-19: Evidence from an Online Job Board," IZA Discussion Papers 15201, IZA Network @ LISER.
    8. Zeng, Xiangquan & Chu, Shuai & Chen, Xuan, 2022. "China's Labor Market Demand in the Shadow of COVID-19: Evidence from an Online Job Board," GLO Discussion Paper Series 1074, Global Labor Organization (GLO).
    9. Kiss, Tibor & Braun, Erik & Sebestyén, Tamás, 2025. "Production network structure, specialization and unemployment: Measuring the structural resilience of national economies," Structural Change and Economic Dynamics, Elsevier, vol. 72(C), pages 11-28.
    10. Qi Zhang & Xinxin Zhang & Qi Cui & Weining Cao & Ling He & Yexin Zhou & Xiaofan Li & Yunpeng Fan, 2022. "The Unequal Effect of the COVID-19 Pandemic on the Labour Market and Income Inequality in China: A Multisectoral CGE Model Analysis Coupled with a Micro-Simulation Approach," IJERPH, MDPI, vol. 19(3), pages 1-21, January.

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    Keywords

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    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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