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The Labor Market Impact of a Pandemic: Validation and Application of a Do-It-Yourself CPS

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Abstract

The Current Population Survey (CPS) is a central source of U.S. labor market data. We show that, for a few thousand dollars, researchers can quickly design and implement their own online survey to supplement the CPS. The survey closely follows core features of the CPS, ensuring that outcomes are conceptually compatible and allowing researchers to weight and validate results using the official CPS. Yet the survey also allows for faster data collection, added flexibility and novel questions. We show that the survey provided useful estimates of U.S. labor market aggregates several weeks ahead of the CPS during the turbulent start of the COVID-19 recession. We then assess the extent of downward nominal wage rigidity at the onset of the pandemic, finding that wage reductions were widespread, but were more common for job-switchers and recalled workers. We discuss a wide range of additional applications.

Suggested Citation

  • Alexander Bick & Adam Blandin, 2020. "The Labor Market Impact of a Pandemic: Validation and Application of a Do-It-Yourself CPS," Working Papers 2031, Federal Reserve Bank of Dallas.
    • Handle: RePEc:fip:feddwp:89244
    DOI: 10.24149/wp2031
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    More about this item

    Keywords

    labor market survey; real-time data; nominal wage rigidity;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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