The Impact of Non-Pharmaceutical Interventions on Unemployment During a Pandemic * Edward Kong Harvard University and Harvard Medical School Daniel Prinz Harvard University April 20, 2020 Abstract We use high-frequency Google search data, combined with data on the announce- ment dates of non-pharmaceutical interventions (NPIs) during the COVID-19 pan- demic in U.S. states, to isolate the impact of NPIs on unemployment in an event-study framework. Exploiting the differential timing of the introduction of NPIs (focusing on restaurant closures) and geographic variation in the share of individuals employed in food service, we analyze how Google searches for claiming unemployment insurance (UI) varied from day to day and across locations. We translate these estimates into es- timates of UI claiming and quantify how much of the overall growth in unemployment during the COVID-19 pandemic was due to NPIs. We find that the announcement of restaurant and bar limitations is associated with an average 15 unit (43%) increase in Google search volume on the day of announcement as well as the following two days. We then estimate that 6.2% of the UI claims between March 14 and March 28, or about 631,000 claims, were caused by states’ implementation of bar and restaurant limitations. Thus, we find that 29% of the 2,177,000 claims filed in the Food and Accommodation industry were caused by bar and restaurant limitations. * Kong: [email protected]. Prinz: [email protected]. We thank Sam Burn, Monica Farid, Ed Glaeser, Larry Katz, Jim Stock, seminar participants at the Harvard Seminar in the Economics of COVID-19, and especially Tim Layton for useful comments. 1 Electronic copy available at: https://ssrn.com/abstract=3581254
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The Impact of Non-Pharmaceutical Interventions onUnemployment During a Pandemic∗
Edward KongHarvard University and Harvard Medical School
Daniel PrinzHarvard University
April 20, 2020
Abstract
We use high-frequency Google search data, combined with data on the announce-ment dates of non-pharmaceutical interventions (NPIs) during the COVID-19 pan-demic in U.S. states, to isolate the impact of NPIs on unemployment in an event-studyframework. Exploiting the differential timing of the introduction of NPIs (focusing onrestaurant closures) and geographic variation in the share of individuals employed infood service, we analyze how Google searches for claiming unemployment insurance(UI) varied from day to day and across locations. We translate these estimates into es-timates of UI claiming and quantify how much of the overall growth in unemploymentduring the COVID-19 pandemic was due to NPIs. We find that the announcement ofrestaurant and bar limitations is associated with an average 15 unit (43%) increase inGoogle search volume on the day of announcement as well as the following two days.We then estimate that 6.2% of the UI claims between March 14 and March 28, orabout 631,000 claims, were caused by states’ implementation of bar and restaurantlimitations. Thus, we find that 29% of the 2,177,000 claims filed in the Food andAccommodation industry were caused by bar and restaurant limitations.
∗Kong: [email protected]. Prinz: [email protected]. We thank Sam Burn, Monica Farid,Ed Glaeser, Larry Katz, Jim Stock, seminar participants at the Harvard Seminar in the Economics ofCOVID-19, and especially Tim Layton for useful comments.
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During a pandemic, governments may implement non-pharmaceutical interventions (NPIs)
to slow the spread of disease. Possible NPIs include shutting down businesses where social
interactions take place. For example, during the COVID-19 pandemic, most U.S. states and
cities chose to shut down bars and restaurants (in most cases only allowing take-out and
delivery), while some states shut down all businesses deemed non-essential.
Measuring the impact of the implementation and the later relaxation of NPIs on economic
outcomes such as employment is not straightforward. Pandemics may impact the economy
through a number of channels. They have direct effects on consumer demand for particular
goods and services, as individuals avoid public places like malls. They may directly decrease
labor supply if managers reduce worker density to avoid outbreaks at their firms. Such
direct impacts operate at the same time NPIs are implemented. This makes it difficult to
distinguish between economic impacts caused by NPIs and economic impacts caused by the
“direct pandemic effects” described above. A further empirical challenge is that data on
employment and unemployment is not readily available at the frequency at which policies
change during pandemics. For example, data on U.S. unemployment insurance (UI) claims
are released weekly, but during the COVID-19 pandemic, information on new cases and the
implementation of new NPIs changed daily.
In this paper, we use high-frequency Google search data, combined with data on the exact
dates of the announcement and implementation of NPIs during the COVID-19 pandemic
in U.S. states to isolate the impact of NPIs on UI claims in an event study framework.
Exploiting the differential timing of the introduction of NPIs (focusing on restaurant closures)
and geographic variation in locations’ shares of employment in the affected industries, we
analyze how Google searches for claiming unemployment varied from day to day and across
states. We then translate these estimates into estimates of UI claiming and quantify how
much of the overall growth in unemployment during the COVID-19 was due to NPIs.
We find that the announcement of restaurant and bar limitations is associated with an
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average 15 unit (43%) increase in Google search volume on the day of announcement as well
as the following two days. We then estimate that 6.2% of the UI claims between March 14
and March 28, or about 631,000 claims, were caused by states’ implementation of bar and
restaurant limitations. Thus, we find that 29% of the 2,177,000 claims filed in the Food and
Accommodation industry were caused by bar and restaurant limitations.
Our work contributes to the emerging literature studying the impact of NPIs adopted
during the COVID-19 pandemic and other pandemics on unemployment. Most closely re-
lated to our work, Ugarov (2020) presents a calculation of lost productivity related to NPIs
and Correia, Luck and Verner (2020) estimate the economic impact of public health inter-
ventions during the 1918 Flu epidemic. To our knowledge, we are the first to present quasi-
experimental evidence on the employment consequences of NPIs adopted during COVID-19
pandemic.
More broadly, we contribute to the literature that examines the economic consequences
of the COVID-19 pandemic. Much of this literature (Atkeson, 2020; Bethune and Korinek,
2020; Eichenbaum, Rebelo and Trabandt, 2020; Jorda, Singh and Taylor, 2020; Guerrieri,
Lorenzoni, Straub and Werning, 2020; Ludvigson, Ma and Ng, 2020) presents macroeco-
nomic simulations of the consequences of the pandemic and evaluates different pandemic
scenarios and the consequences of potential policies using macroeconomic models. Focusing
on labor markets, Alon, Doepke, Olmstead-Rumsey and Tertilt (2020) study the potential
consequences of the COVID-19 pandemic on gender equality and Dingel and Neiman (2020)
provide estimates of what share of jobs can be done from home. Using the Nielsen Homescan
panel, Coibion, Gorodnichenko and Weber (2020) find that job loss during the COVID-19
pandemic has been higher than implied by new UI claims, but many individuals who lost
their jobs are not actively looking for new jobs. This suggests that the unemployment rate
is likely to rise less than expected but there is likely to be a large drop in labor force par-
ticipation. Other papers study short-term aggregate impacts on economic activity (Lewis,
Mertens and Stock, 2020), consumption impacts (Baker et al., 2020), heterogeneity across
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firms (Bartik et al., 2020; Hassan, Hollander, van Lent and Tahoun, 2020), as well as the
economic uncertainty (Baker, Bloom, Davis and Terry, 2020) induced by the pandemic.
We build on work in labor economics and beyond that has used Google search data to
study questions that are difficult to study with more traditional survey and administrative
datasets. Within labor economics, our work is most closely related to Goldsmith-Pinkham
and Sojourner (2020) who use Google search volumes to predict unemployment insurance
claims during the COVID-19 pandemic and earlier work by Baker and Fradkin (2017) who
estimate measures of job search intensity based on Google search and other data and study
the consequences of unemployment insurance policy changes for these measures of search.
The remainder of this paper proceeds as follows. We provide background information on
the COVID-19 pandemic and NPI responses to the pandemic in Section 2. We then describe
our data in Section 3 and methods in Section 4. We present our results in Section 5. In
Section 6, we conclude with brief discussion.
2 Background
2.1 The COVID-19 Pandemic in the U.S.
In January 2020, coronavirus disease 2019 (COVID-19), an infectious disease caused by by-
severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) spread to the United States.
Within three months, COVID-19 had spread to all states and caused between 30,000 and
40,000 deaths (Centers for Diseases Control and Prevention, 2020; Johns Hopkins University,
2020).
COVID-19 is a highly infectious disease: most studies suggest that its basic reproduction
number (R0) is 2.2-2.7. Its most common symptoms include fever, dry cough, fatigue,
sputum production, and shortness of breath. Other symptoms may include loss of smell,
muscle or joint pain, sore throat, headache, chills, nausea or vomiting, nasal congestion and
diarrhoea. In a share of cases, COVID-19 progresses to pneumonia, multi-organ failure, and
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death.
Currently no vaccine or specific treatment exists for COVID-19. U.S. states and cities,
like most countries dealing with COVID-19, have adopted quarantine and social distancing
measures, including non-pharmaceutical interventions that include shutting down certain
types of businesses or severely limiting their operations.
2.2 Non-Pharmaceutical Interventions
Common non-pharmaceutical interventions adopted by U.S. states to mitigate the spread of
COVID-19 include stay-at-home orders, mandatory quarantines for travelers, non-essential
business closures, large gatherings bans, state-mandated school closures, and bar and restau-
rant limits. By April 20, 2020, all U.S. states with the exceptions of Arkansas, Iowa, Ne-
braska, North Dakota, South Dakota, and Wyoming have issued some form of a stay at home
order. By the same time, all states with the exceptions of Arkansas, Minnesota, Nebraska,
South Dakota, Texas, Utah, and Wyoming have implemented some form of non-essential
business closures. Strict bar and restaurants limits had been imposed in all states with the
exception of South Dakota. All other states have closed restaurants and bars except for
takeout and delivery, with the exceptions of Kansas and New Mexico which allow limited
on-site service and Oklahoma where restaurants and bars are closed except for takeout and
delivery only in affected counties (The Henry J. Kaiser Family Foundation, 2020).
Importantly for our analysis, while almost all states eventually implemented these NPIs,
initial implementation was staggered. For example, restaurants and bars were limited to
takeout and delivery in 35 states by March 18, while 4 states still had restaurants and bar
operating a week later. Likewise, 7 states closed all non-essential businesses as early as
March 20th, whereas 16 states had not closed non-essential businesses by April 1st.
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3 Data
We combine data on internet searches from Google Trends, data on NPI implementation
dates from state announcements, as well as state economic data (e.g., industry composition)
and data on the spread of COVID-19.
3.1 Search Data
We use internet search data released through Google Trends for the February 1, 2020 to
March 31, 2020 period.1 Google Trends releases data on relative search intensity for different
terms by day and geographic location (including state, metro area, and city). Because
Google only releases relative search volumes, throughout our analysis, we will normalize
search volumes setting the highest search volume during our time period in California as
100.2
3.2 NPI timing data
We identify states that have implemented NPIs from The Henry J. Kaiser Family Foundation
(2020). For each state and NPI, we identify the precise date on which the NPI was first
announced. In cases where multiple announcements pertained to the same NPI, we use the
first recorded announcement. In the current version of this paper, we report results for the
NPI of restaurant and bar limitations, which restricts restaurants and bars to take-out and
delivery operations. Forbidding dine-in services is intended to reduce close-quarters, person-
to-person contacts and thus slow the spread of the virus, but also reduces demand for the
affected establishments, which may need to lay off workers in response.
1Approximately 90% of internet searches in the U.S. happen on Google.2We use data originally collected and publicly released by Goldsmith-Pinkham and Sojourner (2020).
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3.3 Other data
We identify the share of each state’s employed individuals working in each sector using the
American Community Survey 5-year extract for 2013-2017 (U.S. Census Bureau, 2020). We
use confirmed COVID-19 cases and deaths from Dong, Du and Gardner (2020) and Johns
Hopkins University (2020). We use data on industry-level unemployment growth from March
14-28 in Massachusetts from the Massachusetts Executive Office of Labor and Workforce
Development (2020). Total initial UI claims filed at a national level for weeks ending March
21 and March 28 are derived from weekly news releases from the U.S. Department of Labor
(2020).
4 Empirical Framework
Measuring the causal impact of NPIs on employment is not straightforward. Pandemics may
impact employment through a number of channels. They have effects on consumer demand
for particular goods and services, as individuals avoid public places like malls. They may
decrease labor supply if managers reduce worker density to avoid outbreaks at their firms.
These responses, which we call “direct pandemic effects,” occur at the same time NPIs are
implemented, confounding estimates of the impact of NPIs. A further empirical challenge
is that data on employment and unemployment is not readily available at the frequency at
which policies change during pandemics. Data on U.S. unemployment insurance (UI) claims
are released weekly, but during the COVID-19 pandemic, information on new cases and the
implementation of new NPIs changed daily.
We use high-frequency Google search data, combined with data on the exact dates of the
announcement and implementation of non-pharmaceutical interventions (NPIs) during the
COVID-19 pandemic in U.S. states and cities to isolate the impact of NPIs on UI claims in
an event study framework. Exploiting the differential timing of NPI introductions (focusing
on restaurant and bar limits) and geographic variation in locations’ shares of employment in
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the affected industries, we analyze how Google searches for claiming unemployment varied
from day to day and across cities and states. We then translate these estimates into estimates
of UI claiming and quantify how much of the overall growth in unemployment during the
COVID-19 was due to NPIs.
4.1 Estimation
To quantify the impact of NPIs on unemployment exploiting the differential timing of the
introduction of policies in different states, we estimate an event study regression of the form:
Sit =6∑
τ=−7
γτ × 1 {r = τ}+ αi + αt + εit (1)
where Sit is google search volume in state i and date t, r denotes the days relative to NPI
announcement, and αi, αt are state and date fixed effects. The coefficients of interest γτ
estimate the search volume differential for each day τ relative to the NPI announcement.
We normalize γτ=−1 = 0 and cluster standard errors at the state level.
4.2 Robustness
To assess the robustness of our results, we estimate several alternative specifications. First,
we re-estimate our main event-study specification, excluding California and Washington
which had a large number of cases earlier than other states and New York that was partic-
ularly strongly hit by the pandemic.
Second, we re-estimate our main event-study specification weighting each state by its
total employment. This ensures that our results are not driven by small states that may be
on different trajectories from other areas.
Third, we estimate a difference-in-differences event study specification where we compare
“early adopters” and “late or never adopters”. We label states as “early adopters” if they
implemented an NPI within a week of the first state (March 14-21). We label states as “late
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adopters” if they implemented an NPI on or after March 22, or not at all. We then run the
Lastly, we assume that individuals do not anticipate the implementation of NPIs. For
states that were early to adopt restaurant and bar limitations, this seems like a reasonable
assumption, as Google search volume was essentially zero before the NPIs were announced.
This assumption is more problematic for states that adopted restaurant and bar limits later
(or not at all). Workers in these states might reasonably have anticipated that such limits
were impending, and this may have driven increases in search behavior. We assume that
searches that occurred prior to NPI announcements are due to direct pandemic effects and
not due to anticipation of future NPIs. To the extent that firms and workers anticipated NPI
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announcements in late-adopting states and this led to higher Google searches, our estimates
of the causal NPI effect will be biased toward zero. However, our results would still be policy-
relevant: they estimate the effect of an NPI policy taking as given firms’ expectations. The
policy-relevant treatment effect of the intervention accounts for the possibility that the NPI
results in a smaller unemployment increase because firms have already laid off workers in
anticipation of the NPI.
If the above assumptions hold, then the relative-time effects (given by the γτ coefficients)
estimate the causal impact of the NPI announcement on Google searches, and the estimated
nonlinear time trend (given by the αt coefficients) estimates the growth in search volume
that is unrelated to the NPI announcement.
4.4 Quantifying the Impact of NPIs on UI claims
We use a method proposed by Goldsmith-Pinkham and Sojourner (2020) to translate our
estimates of the impact of NPIs on internet searches into estimates of the impact of NPIs
on actual UI claims.
Our key assumption is that the number of UI claims in a given period is proportional to
the area under the curve defined by the search intensity over the same period.3 With this
assumption, the integral under the estimated NPI effect (γτ ) is proportional to the number
of UI claims caused by the NPI. By comparing this integral to the integral under the time
trend (αt), we can dis-aggregate the overall increase in UI claims into the causal NPI effect
and the direct pandemic effect. Formally, let INPI denote the integral under the event-study
coefficients γτ for τ >= 0 and Iα,t1,t2 denote the integral under the date fixed effects αt
between t1 and t2 (which estimate the direct pandemic effect). The share of the UI claims
3In general, the coefficient of proportionality is difficult to interpret, since over any requested time window,the Google search data are always normalized so that the maximum search intensity equals 100.
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between t1 and t2 that was caused by the NPI can be estimated as:
Share of UI claims caused by NPI =INPI
INPI + Iα,t1,t2. (3)
Because NPIs can have industry-specific impacts, another quantity of interest is the share
of UI claims in a given industry that was caused by the NPI. If the NPI targets industry s
and ρs ∈ [0, 1] is the industry s share of the overall increase in UI claims, then the share of
UI claims for s that was caused by the NPI can be estimated as:
Share of UI claims in s caused by NPI =INPI
ρs × (INPI + Iα,t1,t2). (4)
Defining the appropriate time window [t1, t2] is challenging and will affect estimation of
the shares defined above. We estimate the above shares for bar and restaurant limitations
using a window of t1 = March 14, when the first state adopted limits, up through t2 =
March 28, approximately when the last states adopted limits. This also allows us to simply
use two periods worth of the weekly UI claims data, avoiding interpolation issues.
5 Results
5.1 Event-study Estimates
Figure 2 shows our main event study estimates for restaurant and bar closures. We find that
the announcement of these policies is on average associated with an approximate 15 unit
increase in internet search volume on the day of announcement as well as the following two
days. This represents a 43% increase in search volume relative to a mean (normalized) search
volume of 35.1. This transitory effect diminishes after three days and internet search volume
falls close to its pre-announcement level. This transitory response may reflect an “impulse
response” effect of announcements: workers affected by the restaurant and bar closures may
search online intensively but then search less after they locate the appropriate resources for
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filing a UI claim.
Figure 3 shows the same estimates separately for states with high (above-median) and
low (below-median) food service employment shares. The effect of a restaurant and bar
closure announcement is larger for states with a high share of their residents employed in
food service.
5.2 Robustness
Figure 5 shows alternative versions of our main event study estimate in Figure 2. Panel
(a) repeats our main estimate in Figure 2. Panel (b) re-estimates the same event study,
excluding California, Washington, and New York. Panel (c) re-estimates the same event
study, weighted by total employment in the state. Panel (d) re-estimates the same event
study, excluding California, Washington, and New York and weighted by total employment
in the state. We find that our results are largely similar under these alternative specifications.
Figure 6 shows an alternative specification comparing “early adopters” (March 14-21)
with “late or never adopters” (after March 22 or never). Panel (a) presents baseline results.
Trends for early and late adopters are identical until the first NPI announcement, at which
point the early adopter states experience a jump in search volume that is sustained through
additional announcements by early adopter states. Panel (b) shows the analysis with Wash-
ington, California, and New York excluded. Panels (c) and (d) repeat the analyses in Panels
(a) and (b), with states weighted by their total employment. We find qualitatively similar
results in each of the specifications.
Figure 7 shows an alternative specification that includes controls for case growth and
deaths, both interacted with state dummies to allow their effects to vary by state. The
estimated coefficients on these controls are frequently significant (not shown), but the inclu-
sion of these controls has a very small effect on our results. This suggests that our results
are not driven by correlation between NPI timing and state trajectories of the epidemic (as
measured by case growth and deaths).
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Figure 8 shows an alternative specification where we separately estimate the baseline
event study (Equation 1) for states that had their first death early on in the epidemic (on
or before March 19) or later (after March 19) (see Figure A2 for the distribution of these
first-death dates). The qualitative pattern of point estimates is very similar across the two
sub-samples. Again, this suggests that our estimated NPI effect is not confounded by omitted
variables governing the progression or “first signs” of COVID-19 outbreaks by state.
5.3 Quantitative impact of NPIs on UI claims
We use the method outlined in Section 4.4 to compute the number and share of UI claims
caused by the introduction of bar and restaurant limits. The results from our main speci-
fication (Figure 2) suggest that the effects of the NPI on searches was limited to the first
four days after and including the announcement date. Accordingly, we compute INPI as the
integral from 0 to 3 and obtain INPI ≈ 47.4. We compute Iα,t1,t2 ≈ 712.7 by integrating
the estimated time trend from the event study from t1 = March14 through t2 = March28.
Figure 4 visualizes these integrals. Finally, we impute the share of UI claims between March
14 and March 28 that is due to the Food and Accommodation industry using Massachusetts
data4, which indicates a share of 21.4%. Lastly, we use a total number of UI claims (sea-
sonally adjusted) between March 14 and March 28 of 10,174,000 (U.S. Department of Labor
(2020)).
Combining these data points, we compute that 6.2% of the UI claims between March
14 and March 28, or about 631,000 claims, was due to states’ implementation of bar and
restaurant limitations. We infer that about 2,177,000 claims are filed in the Food and
Accommodation industry and that 29% of these were caused by limitations on bars and
restaurants.
4We could not locate the most recent data on industry-specific UI claims at the national level, so we usethe share from Massachusetts as a proxy measure (see Figure A1)
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6 Discussion
The effects of introducing an NPI and the effect of relaxing the same NPI may not be equal
and opposite. In the case of unemployment, if jobs have been lost due to an NPI, rescinding
the same NPI may not recover all of these lost jobs if employer-worker relationships were
severed. This is itself a prominent concern: if the costs of rebuilding these linkages is high,
then the economy may not bounce back even if NPIs are lifted and direct pandemic effects
mollified (for example, due to an effective therapeutic or vaccine).
Furthermore, the effect of relaxing an NPI depends on firms’ beliefs about how long the
NPI would have lasted. If firms had already anticipated an early relaxation of an NPI (for
example, because of statements made by politicians), then actually relaxing the NPI may
have little additional impact5.
In general, the effect of rescinding an NPI will depend on the costs of re-hiring workers
as well as agents’ prior beliefs on when the original NPI would have been rescinded (when
NPIs are announced, agents likely do not expect them to last forever).
Thus, our estimates can be interpreted as an upper bound on the number of jobs that
could be recovered by relaxing a given NPI; the actual number of recovered jobs may be
much fewer. Even if this upper bound is close to the true number, our estimates suggest
that only a modest fraction (6.2%) of the increase in unemployment can be attributed to a
prominent NPI (bar and restaurant limits) and that this NPI accounts for only 29% of the
growth in unemployment for the Accommodation and Food Service industry.
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Note: Figure shows the number of states announcing restaurant and bar limitations by date.The underlying data were originally collected by The Henry J. Kaiser Family Foundation(2020). Note that the X-axis omits dates with no announcements and that “Missing” indi-cates states that did not announce restaurant and bar limitations as of April 5th.
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Figure 2: Event study of the response of search volume to NPI announcement
Note: Figure shows event study estimates of the impact of restaurant and bar closure an-nouncements on internet search volume. These estimates are based on Equation (2). Theday prior to the announcement is normalized to zero and standard errors are clustered atthe state level. For more details, see Section 4.1.
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Figure 3: Response of search volume to NPI announcement by share employed in food service
Note: Figure shows event study estimates of the impact of restaurant and bar closure an-nouncements on internet search volume, separately for states with low (below-median) andhigh (above-median) food service employment shares. These estimates are based on Equa-tion (2). The day prior to the announcement is normalized to zero and standard errors areclustered at the state level. For more details, see Section 4.1.
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Figure 4: Dis-aggregating Unemployment Effects by Policy and Pandemic Causes
Note: Figure shows how NPI effects and time trends from event studies are used to decomposeUI claims growth into NPI and direct pandemic effects. The left panel shows the impulseresponse in searches following NPI announcements. The right panel shows the overall timetrend of searches during the same period. The areas under the curves represent the shares ofunemployment growth associated with the NPI and the direct pandemic effects, respectively.For more details, see Section 4.4.
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Figure 5: Event study of the response of search volume to NPI announcement
Note: Figure shows alternative versions of our main event study estimate, based on Equa-tion (1). Panel (a) repeats our main event study estimate from Figure 2. Panel (b) re-estimates the same event study, excluding California, Washington, and New York. Panel(c) re-estimates the same event study, weighted by total employment in the state. Panel(d) re-estimates the same event study, excluding California, Washington, and New York andweighted by total employment in the state. For more details, see Section 4.1.
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Note: Figure shows difference-in-differences estimates of the impact of restaurant and barclosure announcements on internet search volume. These estimates are based on Equation (2)and compare “early adopters” (March 14-21) with “late or never adopters” (after March 22or never). Panel (a) presents baseline results. Panel (b) shows the analysis with Washington,California, and New York excluded. Panels (c) and (d) repeat the analyses in Panels (a)and (b), with states weighted by their total employment. The vertical lines represent thefirst NPI announcement, the median announcement date among early adopters, and the lastannouncement date among early adopters. Standard errors are clustered at the state level.For more details, see Section 4.2.
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Figure 7: Event study controlling for case growth and deaths
Note: Figure shows alternative versions of our main event study estimate, based on Equation(1). Panel (a) repeats our main event study estimate from Figure 2. Panel (b) repeats ourmain event study estimate from Figure 2, but includes controls for case growth and numberof deaths, both interacted with state dummies to allow the effect of case growth and deathsto vary by state. Case growth is defined as the increase in cases relative to the prior day.Panel (c) re-estimates the same event study, but weights states by their total number ofemployed individuals. For more details, see Section 4.2.
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Figure 8: Event study for states with early and later signs of an outbreak
Note: Figure shows alternative versions of our main event study estimate, based on Equation(1). Panel (a) repeats our main event study estimate from Figure 2. Panel (b) repeats ourmain event study estimate from Figure 2, but limits to the 26 states that registered theirfirst COVID-19 death on or before March 19. The average date of the first COVID-19 deathwas March 14 for these states. Panel (c) shows the same specification, but limited to statesthat registered their first COVID-19 death later on in the pandemic, after March 19. Theaverage date of the first COVID-19 death among these states was March 24. See Figure A2for the distribution of when states registered their first COVID-19 death. For more details,see Section 4.2.
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A Additional Figures and Tables
Appendix Figure A1: Unemployment Insurance claims by sector in Massachusetts
0 5 10 15 20% share of claims
Accommodation and food servicesHealth care and social assistance
Retail tradeInformation Not Available
ConstructionOther services, except public administration
Professional and technical servicesManufacturing
Administrative and waste servicesTransportation and warehousing
Arts, entertainment, and recreationWholesale trade
Educational servicesReal estate and rental and leasing
Public AdministrationInformation
Management of companies and enterprisesFinance and insurance
Agriculture, forestry, fishing and huntingUtilities
Mining, quarrying, and oil and gas extraction
Note: figure shows new UI claims for Massachusetts between March 14 and 28, broken downby industry. These data are collected from Massachusetts Executive Office of Labor andWorkforce Development (2020).
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Appendix Figure A2: Histogram of when states registered their first COVID-19 death
050
100
150
Freq
uenc
y
01mar2020 07mar2020 14mar2020 20mar2020 27mar2020Date of first death
Note: Figure shows the timing of when states registered their first COVID-19 death. Dataon COVID-19 deaths by state was obtained from Johns Hopkins University (2020).
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