COVID-19 and Firms: Productivity and Government Policies
33 Pages Posted: 18 Aug 2020
Date Written: August 1, 2020
This paper investigates how the COVID-19 pandemic has affected firms and which firms have benefited from government support. Using a panel survey of Portuguese firms conducted during the pandemic matched with pre-COVID administrative data, the results show that the shock was large, but heterogeneous across firms. Though most firms experienced declines in sales, high productivity firms were more likely to remain open, less likely to cut employment and made less use of government support.
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