Vacancy posting, firm balance sheets, and pandemic policy

57 Pages Posted: 21 Sep 2023

See all articles by David Van Dijcke

David Van Dijcke

University of Michigan, Ann Arbor; IPSOS Public Affairs

Marcus Buckmann

Bank of England

Arthur Turrell

Office for National Statistics

Tomas Key

Bank of England

Date Written: July 21, 2023

Abstract

We assess how balance sheets propagated labour demand shocks during Covid-19 using novel matched data on firms and online job postings. Exploiting regional and firm-level variation in three pandemic policies in the UK, we find that financially healthy firms increased vacancies more in response to positive shocks. Less-leveraged firms and firms with higher credit scores increased postings more in response to the Eat Out to Help Out’s local demand subsidies and after receiving a Bounce Back Loan Scheme loan, respectively. These findings complement the link between leverage and employment losses in response to negative shocks.

Keywords: Covid-19, recession, vacancies, Indeed, job postings, job ads, heterogeneity, firm, firm-level, balance sheets, industry, big data, alternative data, labour market, natural language processing

JEL Classification: C5, D2, G3, H1, J2, J6

Suggested Citation

Van Dijcke, David and Buckmann, Marcus and Turrell, Arthur and Key, Tomas, Vacancy posting, firm balance sheets, and pandemic policy (July 21, 2023). Bank of England Working Paper No. 1033, Available at SSRN: https://ssrn.com/abstract=4577697 or http://dx.doi.org/10.2139/ssrn.4577697

David Van Dijcke (Contact Author)

University of Michigan, Ann Arbor ( email )

2350 Hayward Street
Ann Arbor, MI 48109
United States

IPSOS Public Affairs ( email )

Marcus Buckmann

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Arthur Turrell

Office for National Statistics ( email )

London, SW1A 2AA
United Kingdom

Tomas Key

Bank of England

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