Covid Economics Issue 64, 13 January 2021 Zoomshock: the Geography and Local Labour Market Consequences of Working from Home1
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COVID ECONOMICS VETTED AND REAL-TIME PAPERS ZOOMSHOCK ISSUE 64 Gianni De Fraja, Jesse Matheson 13 JANUARY 2021 and James Rockey POLICIES TO SUPPORT BUSINESSES Xavier Cirera, Marcio Cruz, MOBILITY ACROSS GENDER Elwyn Davies et al. AND AGE CONSUMPTION OF THE ENGLISH Francesca Caselli, Francesco Grigoli, Damiano Sandri and Antonio Spilimbergo PATIENT John Gathergood LOCKDOWN AND and Benedict Guttman-Kenney UNEMPLOYMENT IN THE US CONTAGION CONTAINMENT Christian Dreger and Daniel Gros WITHOUT LOCKDOWN REVIEW OF SUPPORT Balázs Égert, Yvan Guillemette, MEASURES IN THE US Fabrice Murtin and David Turner Elena Falcettoni and Vegard M. Nygaard Covid Economics Vetted and Real-Time Papers Covid Economics, Vetted and Real-Time Papers, from CEPR, brings together formal investigations on the economic issues emanating from the Covid outbreak, based on explicit theory and/or empirical evidence, to improve the knowledge base. 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Submission to professional journals The following journals have indicated that they will accept submissions of papers featured in Covid Economics because they are working papers. Most expect revised versions. This list will be updated regularly. American Economic Review Journal of Economic Growth American Economic Review, Applied Journal of Economic Theory Economics Journal of the European Economic American Economic Review, Insights Association* American Economic Review, Journal of Finance Economic Policy Journal of Financial Economics American Economic Review, Journal of Health Economics Macroeconomics Journal of International Economics American Economic Review, Journal of Labor Economics* Microeconomics Journal of Monetary Economics American Journal of Health Journal of Public Economics Economics Journal of Public Finance and Public Canadian Journal of Economics Choice Econometrica* Journal of Political Economy Economic Journal Journal of Population Economics Economics of Disasters and Climate Quarterly Journal of Economics Change Review of Corporate Finance Studies* International Economic Review Review of Economics and Statistics Journal of Development Economics Review of Economic Studies* Journal of Econometrics* Review of Financial Studies (*) Must be a significantly revised and extended version of the paper featured in Covid Economics. Covid Economics Vetted and Real-Time Papers Issue 64, 13 January 2021 Contents Zoomshock: The geography and local labour market consequences of working from home 1 Gianni De Fraja, Jesse Matheson and James Rockey Policies to support businesses through the COVID-19 shock: A firm-level perspective 42 Xavier Cirera, Marcio Cruz, Elwyn Davies, Arti Grover, Leonardo Iacovone, Jose Ernesto Lopez, Denis Medvedev, Franklin Okechukwu Maduko, Gaurav Nayyar, Santiago Reyes Ortega and Jesica Torres The English patient: Evaluating local lockdowns using real-time COVID-19 and consumption data 73 John Gathergood and Benedict Guttman-Kenney Walking the tightrope: Avoiding a lockdown while containing the virus 101 Balázs Égert, Yvan Guillemette, Fabrice Murtin and David Turner Mobility under the COVID-19 pandemic: Asymmetric effects across gender and age 135 Francesca Caselli, Francesco Grigoli, Damiano Sandri and Antonio Spilimbergo Lockdowns and the US unemployment crisis 165 Christian Dreger and Daniel Gros A literature review on the impact of increased unemployment insurance benefits and stimulus checks in the United States 186 Elena Falcettoni andV egard M. Nygaard 1 Covid Economics Issue 64, 13 January 2021 Zoomshock: The geography and local labour market consequences of working from home1 Gianni De Fraja,2 Jesse Matheson3 and James Rockey4 Date submitted: 21 December 2020; Date accepted: 5 January 2021 The Covid-19 health crisis has led to a substantial increase in work done from home, which shifts economic activity across geographic space. We refer to this shift as a 'Zoomshock'. The Zoomshock has implications for locally consumed services; the clientèle of restaurants, coffee bars, pubs, hair stylists, health clubs located near workplaces now demand those services near where they live. In this paper we measure the Zoomshock at a granular level for UK neighbourhoods. We establish three important empirical facts. First, the Zoomshock is large; many workers can work- from-home and live in a different neighbourhood than they work. Second, the Zoomshock is very heterogenous; economic activity is decreasing in productive city centres and increasing residential suburbs. Third, the Zoomshock moves workers away from neighbourhoods with a large supply of locally consumed services to neighbourhoods where the supply of these services is relatively scarce. We discuss the implications Covid Economics 64, 13 January 2021: 1-41 for aggregate employment and local economic recovery following the