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Productivity and responses to the pandemic: Firm-level evidence

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  • Harasztosi, Péter
  • Savšek, Simon

Abstract

In this paper, we empirically assess repercussions of the pandemic on the firm-level productivity worldwide. COVID-19 shock was very heterogeneous across sectors. Our findings show that firms' responses to the shock also varied within sectors: more productive firms coped with the crisis better in terms of closures and employment adjustments. Besides, they were more likely to speed up some digitalization processes. These findings imply that the recent crisis could amplify the difference between highly productive and less productive firms. As regards the governments' policy measures, we find strong utilization at the firm level, but very little differentiation across productivity quantiles, suggesting room for a more targeted approach in the reminder of the pandemic.

Suggested Citation

  • Harasztosi, Péter & Savšek, Simon, 2022. "Productivity and responses to the pandemic: Firm-level evidence," EIB Working Papers 2022/09, European Investment Bank (EIB).
    • Handle: RePEc:zbw:eibwps:202209
    DOI: 10.2867/011145
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    References listed on IDEAS

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    1. Erica Bosio & Filip Jolevski & Joseph Lemoine & Rita Ramalho, 2020. "Survival of firms in developing economies during economic crisis," CEPR Press Book Chapters, in: Simeon Djankov & Ugo Panizza (ed.), COVID-19 in Developing Economies, edition 1, volume 1, chapter 1, pages 157-174, Centre for Economic Policy Research.
    2. Nicholas Bloom & Philip Bunn & Paul Mizen & Pawel Smietanka & Gregory Thwaites, 2025. "The Impact of Covid-19 on Productivity," The Review of Economics and Statistics, MIT Press, vol. 107(1), pages 28-41, January.
    3. Bosio, Erica & Djankov, Simeon & Jolevski, Filip & Ramalho, Rita, 2020. "Survival of firms during economic crisis," LSE Research Online Documents on Economics 118912, London School of Economics and Political Science, LSE Library.
    4. Miklós Koren & Rita Pető, 2020. "Business disruptions from social distancing," PLOS ONE, Public Library of Science, vol. 15(9), pages 1-14, September.
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    Cited by:

    1. Brault, Julien, 2023. "Recent trends in EU corporate demography and policy: COVID and beyond," EIF Working Paper Series 2023/90, European Investment Fund (EIF).

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