Post-pandemic Productivity Dynamics in the United States

Author/Editor:

Mai Dao ; Josef Platzer

Publication Date:

June 21, 2024

Electronic Access:

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Summary:

We study U.S. labor productivity growth and its drivers since the COVID-19 pandemic. Labor productivity experienced large swings since 2020, due to both compositional and within-industry effects, but has since returned to its pre-pandemic trend. Industry-level panel regressions show that measures of labor market churn are associated with higher productivity growth both in the cross-section and over time. Sectors with higher investment in digitalization, particularly in teleworkable industries, also experience higher productivity growth on average. There has also been an increase in business formation since the pandemic, but its impact on productivity dynamics will likely need more time to be reflected in the data.

Series:

Working Paper No. 2024/124

Subject:

Frequency:

regular

English

Publication Date:

June 21, 2024

ISBN/ISSN:

9798400279713/1018-5941

Stock No:

WPIEA2024124

Format:

Paper

Pages:

32

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