10 May 2021
Wednesday 26th May 2021 at 13:00–14:00
This study conducted by researchers from the Bank of England, University of Nottingham, and Stanford University analyses the impact of Covid-19 on productivity in the United Kingdom using data copied from a large monthly firm panel survey.
The estimates suggest that Covid-19 will reduce total factor productivity (TFP) in the private sector by up to 5%, falling back to a 1% reduction in the medium term. Firms anticipate a large reduction in ‘within-firm’ productivity, primarily because measures to contain Covid-19 are expected to increase intermediate costs.
The negative ‘within-firm’ effect is partially offset by a positive ‘between-firm’ effect as low productivity sectors, and the least productive firms among them, are disproportionately affected by Covid-19 and consequently make a smaller contribution to the economy.
In the longer run, productivity growth is likely to be reduced by diminished research and development (R&D) expenditure and diverted CEOs’ time spent on dealing with the pandemic.
To register and recieve the seminar link please contact Fernando Moreira. The Microsoft Teams link will be provided a week before the seminar.