The Dampening Effects of Information Technology Adoption on US Unemployment
(Percent)Sources: Google Community Mobility Report; Keystone; and IMF staff calculations.Note: The y-axis in panels 1 and 2 is the increase in the state-level unemployment rate between February and April 2020 in percent. The x-axis in panel 1 is the average lockdown stringency between February and April 2020; the x-axis in panel 2 is the average drop in mobility. Panel 3 illustrates the results of a regression using data from the Current Population Survey in which the dependent variable is a dummy indicating if the respondent is unemployed in April 2020, and the independent variables are the IT adoption and the drop in mobility in the metropolitan statistical area where the respondent lives, together with their interaction. The y-axis of panel 3 reports the magnitude of the coefficient of the interaction term for each subsample. Low education refers to respondents who did not graduate from high school. See Pierri and Timmer (2020) for more details. IT = information technology.