Working Remotely and the Supply-Side Impact of COVID-19

68 Pages Posted: 2 Jun 2020 Last revised: 13 Aug 2021

Multiple version iconThere are 2 versions of this paper

Date Written: August 13, 2021


We analyze the supply-side disruptions associated with Covid. We find that sectors in which a higher fraction of the workforce is not able to work remotely experienced greater declines in employment and expected revenue growth, worse stock market performance, and higher likelihood of default. The stock market overweighs low-exposure industries, thus our findings cast light on the disconnect between stock market indices and aggregate outcomes. We combine these ex-ante heterogeneous industry exposures with daily financial market data to create a stock return portfolio that tracks news about the supply-side disruptions resulting from the pandemic.

Suggested Citation

Papanikolaou, Dimitris and Schmidt, Lawrence, Working Remotely and the Supply-Side Impact of COVID-19 (August 13, 2021). Available at SSRN: or

Dimitris Papanikolaou (Contact Author)

Northwestern University - Kellogg School of Management - Department of Finance ( email )

Evanston, IL 60208
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Lawrence Schmidt

MIT Sloan School of Management ( email )

77 Massachusetts Avenue
Cambridge, MA 02139-4307
United States

HOME PAGE: http://

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
PlumX Metrics