Roundup: Vulnerable Households, Offshoring and Reconstructing the Great Recession

Today, we’re highlighting some research the St. Louis Fed has recently produced that you may have missed.

Economic Synopses

Unemployment Insurance and Vulnerable Households During the COVID-19 Pandemic

Can workers endure job loss without an increase in unemployment insurance benefits? Many unemployed individuals don’t have enough liquid wealth to cope with the negative effects of job loss.

Is the COVID-19 Pandemic a Supply or a Demand Shock?

Labor supply shocks likely accounted for most of the fall in hours worked in March and April, but demand shocks were also important.

Regional Economist

Hospital Capacity amid the COVID-19 Pandemic

Most counties in the U.S. didn’t reach hospital bed capacity during COVID-19 peaks through June 30. However, about a quarter of counties are at risk of overcapacity if a future surge occurs.

Review

Reconstructing the Great Recession

How much can a downturn in construction hurt the rest of the economy? New research suggests that during the Great Recession, the downturn in construction may have caused over 50% of the decline in output and 35% of the decline in employment.

Offshoring to a Developing Nation with a Dual Labor Market

If work in one country can be offshored more cheaply in another country, it usually is. As offshore technology improves, wages may decrease in both countries as more work is completed by unregulated workers.