Pouring the Paycheck Protection Program into Craft Beer: PPP Employment Effects in Service-Intensive Industries

25 Pages Posted: 22 Sep 2023

See all articles by Aaron Staples

Aaron Staples

University of Tennessee, Knoxville

Kristopher Deming

Michigan State University

Trey Malone

College of Agriculture, Department of Agricultural Economics, Purdue University

Craig Carpenter

Texas A&M University; Michigan State University

Stephan Weiler

Colorado State University, Fort Collins - Department of Economics

Abstract

Pivots in consumer demand during COVID-19 led to the development of the Paycheck Protection Program (PPP), providing small businesses with forgivable loans to keep workers on payroll. One of the more salient pivots was the shift away from eating and drinking places, which generated unprecedented swings in employment throughout the pandemic. This study links restricted microdata from the Colorado Quarterly Census of Employment and Wages to microdata on PPP loan recipients to assess whether the first round of the loan program effectively reduced unemployment rates in Colorado's craft beer industry. The results of a staggered difference-in-differences framework indicate immediate and longer-term positive and statistically significant effects of the loan program on employment outcomes, with employment effects ranging from 16.8-19.5%. These results emphasize the importance of understanding the loan program’s effectiveness among hard-hit primarily comprised of small businesses.

Keywords: breweries, employment, food and beverage service, Paycheck Protection Program, QCEW, small business

Suggested Citation

Staples, Aaron and Deming, Kristopher and Malone, Trey and Carpenter, Craig and Weiler, Stephan, Pouring the Paycheck Protection Program into Craft Beer: PPP Employment Effects in Service-Intensive Industries. Available at SSRN: https://ssrn.com/abstract=4574116 or http://dx.doi.org/10.2139/ssrn.4574116

Aaron Staples (Contact Author)

University of Tennessee, Knoxville ( email )

Kristopher Deming

Michigan State University ( email )

Agriculture Hall
East Lansing, MI 48824-1122
United States

Trey Malone

College of Agriculture, Department of Agricultural Economics, Purdue University ( email )

United States

Craig Carpenter

Texas A&M University ( email )

College Station, TX 77843
United States

Michigan State University ( email )

MI
United States

Stephan Weiler

Colorado State University, Fort Collins - Department of Economics ( email )

Fort Collins, CO 80523-1771
United States

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