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

29 Pages Posted: 8 Dec 2020

See all articles by Hanming Fang

Hanming Fang

ShanghaiTech University - School of Entrepreneurship and Management

Chunmian Ge

South China University of Technology

Hanwei Huang

London School of Economics & Political Science (LSE)

Hongbin Li

Stanford University

Date Written: November 2, 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.

Keywords: COVID-19, labor demand, global supply chains, trade

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 2, 2020). ShanghaiTech SEM Working Paper No. 2020-011, Available at SSRN: https://ssrn.com/abstract=3744881 or http://dx.doi.org/10.2139/ssrn.3744881

Hanming Fang (Contact Author)

ShanghaiTech University - School of Entrepreneurship and Management ( email )

100 Haike Rd
Pudong Xinqu, Shanghai
China

Chunmian Ge

South China University of Technology ( email )

China

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 University ( email )

Stanford, CA 94305
United States

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