DP15156 Covid-19 and Firms: Productivity and Government Policies

Author(s): Nicholas Kozeniauskas, Pedro Moreira, Cezar Santos
Publication Date: August 2020
Programme Areas: Macroeconomics and Growth
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=15156

This paper investigates how the Covid-19 pandemic has affected firms and which firms have benefited from government support. Using a panel survey of Portuguese firms conducted during the pandemic matched with pre-Covid administrative data, the results show that the shock was large, but heterogeneous across firms. Though most firms experienced declines in sales, high productivity firms were more likely to remain open, less likely to cut employment and made less use of government support.