Economics Working Papers

Publication Date

7-7-2020

Number

20015

Abstract

We examine effects of the COVID-19 pandemic on employment losses across metropolitan area status and population size. Non-metropolitan and metropolitan areas of all sizes experienced significant employment losses, but the impacts are much larger in large metropolitan areas. Employment losses manifest as increased unemployment, labor force withdrawal, and temporary absence from work. We examine the role of individual and local area characteristics in explaining differing employment losses across metropolitan status and size. The local COVID-19 infection rate is a major driver of differences across MSA size. Industry mix and employment density also matter. The pandemic significantly altered urban economic activity.

JEL Classification

J2, R2

Version History

Original Release Date: July 7, 2020

Departments

Department of Economics, Iowa State University

File Format

application/pdf

Length

36 pages

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