Pandemics, Global Supply Chains, and Local Labor Demand: Evidence from 100 Million Posted Jobs in China

29 Pages Posted: 16 Nov 2020 Last revised: 15 Mar 2021

See all articles by Hanming Fang

Hanming Fang

University of Pennsylvania - Department of Economics; National Bureau of Economic Research (NBER)

Chunmian Ge

South China University of Technology

Hanwei Huang

London School of Economics & Political Science (LSE)

Hongbin Li

Stanford Institute for Economic Policy Research

Multiple version iconThere are 2 versions of this paper

Date Written: November 2020

Abstract

This paper studies how the COVID-19 pandemic has affected labor demand using over 100 million posted jobs on one of the largest online platforms in China. Our data reveals that, due to the effects of the pandemic both in China and abroad, the number of newly posted jobs within the first 13 weeks after the Wuhan lockdown on January 23, 2020 was about one third lower than that of the same lunar calendar weeks in 2018 and 2019. Using econometric methods, we show that, via the global supply chain, COVID-19 cases abroad and in particular pandemic-control policies by foreign governments reduced new job creations in China by 11.7%. We also find that Chinese firms most exposed to international trade outperformed other firms at the beginning of the pandemic but underperformed during recovery as the Novel Coronavirus spread throughout the world.

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Suggested Citation

Fang, Hanming and Ge, Chunmian and Huang, Hanwei and Li, Hongbin, Pandemics, Global Supply Chains, and Local Labor Demand: Evidence from 100 Million Posted Jobs in China (November 2020). NBER Working Paper No. w28072, Available at SSRN: https://ssrn.com/abstract=3731241

Hanming Fang (Contact Author)

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Chunmian Ge

South China University of Technology ( email )

School of Business Administration
South China University of Technology
Guangzhou, Guangdong 510640
China

HOME PAGE: http://sites.google.com/site/gechunmian/

Hanwei Huang

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://https://sites.google.com/site/chinahanweihuang/

Hongbin Li

Stanford Institute for Economic Policy Research ( email )

366 Galvez St
Stanford, CA 94305
United States

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