Corporate Hiring Under Covid-19: Labor Market Concentration, Downskilling, and Income Inequality

46 Pages Posted: 26 May 2020

See all articles by Murillo Campello

Murillo Campello

Cornell University - Samuel Curtis Johnson Graduate School of Management; National Bureau of Economic Research (NBER)

Gaurav Kankanhalli

Cornell University, Samuel Curtis Johnson Graduate School of Management, Department of Finance

Pradeep Muthukrishnan

Cornell University, Samuel Curtis Johnson Graduate School of Management, Department of Finance

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Date Written: May 2020

Abstract

Big data on job-vacancy postings reveal several dimensions of the impact of COVID-19 on the U.S. job market. Firms have cut back on postings for high-skill jobs more than for low-skill jobs, with small firms nearly halting their new hiring altogether. New-hiring cuts and downskilling are most pronounced in local labor markets lacking depth (where employment is concentrated within a few firms), in low-income areas, and in areas with greater income inequality. Cuts are deeper in industries where workers are more unionized and in the non-tradable sector. Access to finance modulates corporate hiring, with credit-constrained firms curtailing their job postings the most. Our study shows how the early-2020 global pandemic is shaping the dynamics of hiring, identifying the firms, jobs, places, industries, and labor markets most affected by it. Our results point to important challenges to the scale and speed of a recovery.

Suggested Citation

Campello, Murillo and Kankanhalli, Gaurav and Muthukrishnan, Pradeep, Corporate Hiring Under Covid-19: Labor Market Concentration, Downskilling, and Income Inequality (May 2020). NBER Working Paper No. w27208, Available at SSRN: https://ssrn.com/abstract=3609661

Murillo Campello (Contact Author)

Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )

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HOME PAGE: http://www.johnson.cornell.edu/Faculty-And-Research/Profile.aspx?id=mnc35

National Bureau of Economic Research (NBER) ( email )

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Cambridge, MA 02138

Gaurav Kankanhalli

Cornell University, Samuel Curtis Johnson Graduate School of Management, Department of Finance ( email )

Ithaca, NY
United States

HOME PAGE: http://gauravkankanhalli.com

Pradeep Muthukrishnan

Cornell University, Samuel Curtis Johnson Graduate School of Management, Department of Finance ( email )

Ithaca, NY
United States

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