Did COVID-19 induce a reallocation wave?

Recent research has argued that the COVID-19 shock also brought about a real- location shock. We examine evidence for such an occurrence in United States, taking broad perspective. first consider micro data from CPS and JOLTS; there is no noticeable uptick occupation or sector switches, nor churn, either at aggregate level cross-section, when broken down by firms’ size. then whether mismatch unemployment risen as result of pandemic; using off-the-shelf multisector search matching model, little important role driving elevated rate. Finally, we employ novel Bayesian SVAR framework with sign restrictions to identify reallocation shock; find it played relatively minor explaining labor market patterns pandemic, least relative its importance earlier episodes.