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1.
Learned Publishing ; 36(1):109-118, 2023.
Article in English | Web of Science | ID: covidwho-2310673

ABSTRACT

circle Plain language summaries (PLS) are accessible, short, peerreviewed summaries of scholarly journal articles written in nontechnical language. circle The aim of PLS is to enable a broader audience of experts and non-experts to understand the original article. circle Here, we outline the evidence base for the value and impact of PLS and how they can enable diversity, equity, inclusion and accessibility in scholarly publishing. circle PLS can diversify readership and authorship, address information inequity, include typically under-represented stakeholders and provide an accessible route into scholarly literature.

2.
Small Business Economics ; 60(4):1719-1760, 2023.
Article in English | ProQuest Central | ID: covidwho-2300614

ABSTRACT

This paper examines whether the economic crisis induced by the COVID-19 pandemic exhibits a Schumpeterian "cleansing” of less productive firms. Using firm-level data collected for 34 economies up to 18 months into the crisis, the study finds that less productive firms have a higher probability of permanently closing during the crisis, suggesting that the process of cleansing out unproductive activities is occurring. The paper also uncovers strong and negative relationships of firm exit with digital presence and with innovation. These relationships are driven by small firms. The study further finds that a burdensome business environment increases the probability of firm exit, also driven by small firms, and that a negative relationship exists between firm exit and age. Finally, evidence shows that the cleansing process is disrupted in countries which have introduced policies imposing a moratorium on insolvency procedures.Plain English SummaryThe purpose of this analysis is to investigate whether firms that are more productive are less likely to cease operation during the economic crisis induced by the COVID-19 pandemic. To verify this hypothesis, the paper uses data on firm characteristics, productivity, and status of operation from 34 countries. The data on firm characteristics and productivity were collected before the crisis, while data on the operating status were collected within 18 months since the appearance of the coronavirus. The results of the paper show that indeed, more productive firms are more likely to survive the crisis. In addition, businesses that have been in operation for longer, or ones which have a website or have introduced a new product in the years before the crisis are more likely to continue existing. The positive role of digitalization and innovation is true especially for small firms. Conversely, those businesses which have to spend more time in compliance with government regulations are less likely to survive. The policy implications show the importance of digitalization and innovation, the vulnerabilities of small firms, and the significance of good governance.

3.
Small Business Economics ; 60(4):1699-1717, 2023.
Article in English | ProQuest Central | ID: covidwho-2300424

ABSTRACT

The Covid-19 pandemic had an unequal impact across businesses and communities and rapidly accelerated digital trends in the economy. What role, then, did website use play in community resilience and small business outcomes? This article examines a new source of population data on domain name hosts to provide a unique measure of digital economic activity within communities. Seventy-five percent are commercial, including online-only, brick-and-mortar, small, and microbusinesses. With geolocated data on 20 million US domain name hosts, we investigate how their density (per 100 people) affected economic outcomes in the nation's largest metros during the pandemic. Using monthly time series data for the 50 largest metropolitan areas, the domain host data is merged with the US Census Small Business Pulse Surveys and Chetty et al.'s Opportunity Insights data. Results indicate metros with higher concentrations of businesses with an online presence experienced more positive economic perceptions and outcomes from April to December 2020. This high-frequency, granular data on digital economic activity suggests that digitally enabled small and microbusinesses played an important role in local economic resilience and demonstrates how commercial data can be used to generate new insights in a fast-changing environment.Plain English SummaryNew data show websites were a resource for small business and community resilience in Covid-19. While some studies have shown how digital technologies helped businesses during the pandemic, little research has examined how website use during this time affected communities and their small businesses. Data on the number of domain name hosts (per 100 people) provides a measure of the prevalence of website use in a community. Seventy-five percent of these domain name sites are commercial, primarily small, and microbusinesses. We examine economic outcomes for the 50 largest metros from April to December 2020, including credit and debit card spending, small business revenues and openings, and the perceptions of small business owners. With monthly data and across multiple measures, we find that this digital economic activity positively affected the resilience of communities and small businesses. These findings suggest that policies for an inclusive and effective recovery should consider support for digital skills and effective website use for small and microbusinesses.

4.
Small Business Economics ; 60(4):1613-1629, 2023.
Article in English | ProQuest Central | ID: covidwho-2294833

ABSTRACT

Previous estimates indicate that COVID-19 led to a large drop in the number of operating businesses operating early in the pandemic, but surprisingly little is known on whether these shutdowns turned into permanent closures and whether small businesses were disproportionately hit. This paper provides the first analysis of permanent business closures using confidential administrative firm-level panel data covering the universe of businesses filing sales taxes from the California Department of Tax and Fee Administration. We find large increases in closure rates in the first two quarters of 2020, but a strong reversal of this trend in the third quarter of 2020. The increase in closures rates in the first two quarters of the pandemic was substantially larger for small businesses than large businesses, but the rebound in the third quarter was also larger. The disproportionate closing of small businesses led to a sharp concentration of market share among larger businesses as indicated by the Herfindahl–Hirschman Index with only a partial reversal after the initial increase. The findings highlight the fragility of small businesses during a large adverse shock and the consequences for the competitiveness of markets.Plain English SummarySmall businesses were more likely to close permanently during the early stages of the COVID-19 pandemic than large businesses. Although they rebounded strongly thereafter, market concentration remains higher than before the pandemic. We obtain these results from analyzing administrative firm-level data covering all businesses filing sales taxes in California. Our analysis contributes to research by demonstrating the fragility of small businesses during a crisis relative to large businesses. Our findings imply that small businesses may need additional support given the trend toward purchases from large online retailers.

5.
Small Business Economics ; 60(2):691-705, 2023.
Article in English | ProQuest Central | ID: covidwho-2276604

ABSTRACT

The restrictions on labor mobility imposed in the COVID-19 pandemic heighten the need to review in detail the role of mobility in improving productivity and fostering economic growth. In this study, we carry out a comprehensive analysis of business visits (BVs) understood as a productivity-enhancing intrapreneurial strategy, using the most extensive set of data available, covering 33 sectors and 14 countries during the period 1998–2013. Our database merges unique information on expenditures on BVs by sector, country, and year, sourced from the US National Business Travel Association, with OECD and World Bank productivity data. We find that BVs raise labor productivity in a significant way, but short-term labor mobility exhibits decreasing returns, being more crucial in those firms, sectors, and countries characterized by less mobility and by lower productivity performances.Plain English SummaryCOVID-19 has imposed restrictions on labor mobility and this turns out to be relevant for productivity and economic growth. Business visits (BVs) are a proper proxy (unique information is taken from the US National Business Travel Association) to measure short-term mobility. Sectoral data in 14 countries over the period 1998–2013 are used. Results do reveal that BVs have a positive impact on labor productivity. However, this effect is more relevant in those sectors and economies at a lower stage of productivity evolution, i.e., the lower the initial productivity level, the larger the effect of BVs on productivity. Therefore, BVs play a relevant role in sectors and countries lagging behind in terms of productivity. Policy makers should foster, in the post-pandemic recovery, short-term labor mobility through adequate incentives and tax exemptions, particularly in those sectors where BVs are less frequent and where productivity growth is below the average.

6.
Small Business Economics ; 60(3):1009-1031, 2023.
Article in English | ProQuest Central | ID: covidwho-2276603

ABSTRACT

This work contributes to disaster research by exploring the impact on new firm creation of the COVID-19 pandemic and the pandemic-related policies. We develop hypotheses on the individual and combined effects of pandemic severity and public policies aimed at controlling the spread of the disease (shutdown policies) or protecting the economy from its negative consequences (demand stimulus and firm support policies). Then, we test these hypotheses using data on Italy in the first and second 2020 pandemic waves. Results show that pandemic severity negatively affected new firm creation during the first wave. Shutdown policies had negative effects too, especially in the regions where the pandemic was less severe. The effects of demand stimulus policies were positive and stronger the less severe the pandemic was while the impact of firm support policies was negative in the regions where the pandemic was more severe. All these effects vanished in the second wave.Plain English SummaryDisasters cause slowdowns in new firm creation that disaster recovery policies may aggravate or alleviate. Our analysis of the effects of the COVID-19 pandemic in Italy reveals that this major disaster resulted in a large drop in new firm creation rates. During the first pandemic wave, the drop was concentrated in the regions where the pandemic was more severe. Examining the effects of the shutdown policies implemented to contain the spread of the disease and the measures designed to protect the economy provides useful guidelines for policymakers. First, we show that shutdown policies inhibit new firm creation. Policymakers can however alleviate this negative effect by implementing less strict measures in the areas not severely affected by the disaster. Second, despite we understand that policymakers need to provide relief to existing firms in the most affected industries to avoid business failures, we indicate they should simultaneously invest in stimulating demand in these industries to sustain also new firm creation.

7.
A multidisciplinary approach to capability in age and ageing ; : 109-129, 2022.
Article in English | APA PsycInfo | ID: covidwho-2266892

ABSTRACT

The rapidly increasing size of the ageing population, and in particular older adults living alone, requires the incorporation of eHealth into social and healthcare services, in order to choose the best way to manage their needs and demands for health and medical care. The purpose of this brief scoping study is to describe and identify an important dimension in this context, namely eHealth literacy (eHL) and its relation to health-promoting behaviours among older adults within the capability theoretical framework. The chapter examines some aspects of eHL and recent research highlighting the importance of eHL and the direct correlation between eHL and quality of life for older adults within the capability context. To make this more specific and explicit, this study takes into consideration outstanding circumstances, such as those caused by a pandemic crisis, namely the coronavirus disease 2019 (COVID-19). Since the COVID-19 pandemic has required urgent action and rapid containment, it offers a unique opportunity to test and evaluate the readiness of healthcare systems and to rapidly develop, scale up and enhance eHealth for the benefit of older people. However, this comes with a price, which is the necessity to quickly and effectively navigate complex information environments and manage behavioural changes and health. (PsycInfo Database Record (c) 2022 APA, all rights reserved)

8.
Future Virology ; 18(1):9-20, 2023.
Article in English | EMBASE | ID: covidwho-2259604

ABSTRACT

What is this summary about? This is a summary of an article about part of a clinical study for the BNT162b2 COVID-19 vaccine, also called the Pfizer-BioNTech vaccine. The article was published in the New England Journal of Medicine in May 2021. This summary describes how the vaccine worked in participants 12- to 15-years old. The part of the study described in the article is ongoing and expected to finish March 2023. This means that the final results may be different from the results included in this summary. What happened in this study? The part of the study described in this summary included participants 12- to 15-years old who had no serious health issues. The BNT162b2 vaccine had already been studied in participants 16 years of age or older. In this part of the study, the researchers wanted to find out: * How effective and safe the vaccine was in participants 12- to 15-years old. * What the immune response to the vaccine and the vaccine safety were like in 12- to 15-year-olds compared with 16- to 25-year-olds. * How well the vaccine prevented SARS-CoV-2 infections in participants who received the vaccine compared to those who did not. This is also called efficacy of the BNT162b2 vaccine Half of the participants in this study received 2 injections of the BNT162b2 vaccine and half received 2 injections of a placebo in a muscle of the upper arm. The placebo looked like the BNT162b2 vaccine but did not have any active vaccine in it. What were the results? * BNT162b2 had a favorable safety profile. The most common reactions were pain at the injection site, fatigue, and headache. None of the participants had serious reactions to the vaccine. * The 12- to 15-year-old participants' immune system responses to the BNT162b2 vaccine were as good as or stronger than the 16- to 25-year-old participants' immune responses. * The participants who received the BNT162b2 vaccine were less likely to get COVID-19 compared with the participants who got the placebo.Copyright © 2023 The Authors.

9.
Small Business Economics ; 60(2):639-657, 2023.
Article in English | ProQuest Central | ID: covidwho-2285113

ABSTRACT

This paper investigates the impact of recent recessions on the origins of productivity growth. We show how business cycles affect productivity growth, with particular attention for the impact of job reallocation and labor hoarding. We find evidence that recessions induce productivity enhancing job reallocation in manufacturing but not in services industries and show that labor hoarding mitigates this cleansing effect of recessions. Furthermore, we show how entry and exit of firms and industry dynamics shape the evolution of aggregate productivity.Plain English SummaryDuring recessions, governments support firms via temporary unemployment programs to save jobs. A side effect is that job reallocation and exit of low-productive firms can be distorted, while such cleansing effects typically spur productivity growth. This paper investigates how recessions affect productivity growth, with particular attention for the impact of job reallocation and labor hoarding. We find evidence that recessions induce productivity enhancing job reallocation in manufacturing but not in services industries and show that labor hoarding mitigates this cleansing effect of recessions. Furthermore, we show how entry and exit of firms and industry dynamics shape the evolution of aggregate productivity. As many developed economies struggle with a slowdown in productivity growth, it is important that policy makers understand the impact of recessions on the micro origins of productivity growth and are aware of how temporary policies during recessions could affect long-term productivity growth.

10.
Neurodegener Dis Manag ; 2022 10 24.
Article in English | MEDLINE | ID: covidwho-2234882

ABSTRACT

WHAT IS THIS SUMMARY ABOUT?: People with multiple sclerosis (shortened to MS) who are taking cladribine tablets may have concerns about whether they can be vaccinated against COVID-19. This summary details the findings from a previously published article, in which an international committee of 10 MS experts developed recommendations to answer some important questions about COVID-19 vaccines in people with MS (including relapsingremitting or active secondary progressive disease) taking cladribine tablets. WHAT WERE THE RESULTS?: The committee identified 13 recommendations, which were all agreed upon by at least three-quarters (75%) of the 38 voting MS experts. Generally, they recommended that people with MS taking cladribine tablets should be vaccinated for COVID-19 as soon as possible, because the vaccine is thought to be both safe and effective, and vaccine responses were not likely to be affected by cladribine tablets. WHAT DO THE RESULTS MEAN?: Overall, people with MS taking cladribine tablets should receive the COVID-19 vaccine to protect themselves, unless advised differently by their healthcare provider.

11.
Future Virology ; 17(12):849-862, 2022.
Article in English | Web of Science | ID: covidwho-2198203

ABSTRACT

What is this summary about?This is a summary of an article about part of a clinical study for the BNT162b2 COVID-19 vaccine, also called the Pfizer-BioNTech vaccine. The article was published in the New England Journal of Medicine in September 2021. The part of the study described in the article began in July 2020 and is ongoing. This means that the final results may be different from the results included in this summary.What happened in this study?The participants in this study received 2 injections of either the BNT162b2 vaccine or a placebo, 21 days apart. The placebo looked like the BNT162b2 vaccine but had no active vaccine in it. None of the trial participants or study teams knew who received vaccine or placebo.What were the results?Most of the reactions to the injections were mild or moderate and lasted for a short period of time. The most common reactions were pain at the injection site, extreme tiredness (fatigue), and headache. These reactions usually happened in the first 7 days after receiving a vaccine dose. A small number of participants had severe reactions to the vaccine.Compared to participants who received the placebo, participants who received the BNT162b2 vaccine were much less likely to become ill if they were infected with the virus that causes COVID-19. The vaccine also had very good efficacy at preventing severe COVID-19.Participants in South Africa who received the BNT162b2 vaccine were less likely to become ill after infection with the beta variant of the virus compared to participants who received the placebo. The beta variant was very common in South Africa when the study was taking place.

12.
Trials ; 24(1): 27, 2023 Jan 14.
Article in English | MEDLINE | ID: covidwho-2196416

ABSTRACT

INTRODUCTION: The COVID-19 pandemic underlined that guidelines and recommendations must be made more accessible and more understandable to the general public to improve health outcomes. The objective of this study is to evaluate, quantify, and compare the public's understanding, usability, satisfaction, intention to implement, and preference for different ways of presenting COVID-19 health recommendations derived from the COVID-19 Living Map of Recommendations and Gateway to Contextualization (RecMap). METHODS AND ANALYSIS: This is a protocol for a multi-method study. Through an online survey, we will conduct pragmatic allocation-concealed, blinded superiority randomized controlled trials (RCTs) in three populations to test alternative formats of presenting health recommendations: adults, parents, and youth, with at least 240 participants in each population. Prior to initiating the RCT, our interventions will have been refined with relevant stakeholder input. The intervention arm will receive a plain language recommendation (PLR) format while the control arm will receive the corresponding original recommendation format as originally published by the guideline organizations (standard language version). Our primary outcome is understanding, and our secondary outcomes are accessibility and usability, satisfaction, intended behavior, and preference for the recommendation formats. Each population's results will be analyzed separately. However, we are planning a meta-analysis of the results across populations. At the end of each survey, participants will be invited to participate in an optional one-on-one, virtual semi-structured interview to explore their user experience. All interviews will be transcribed and analyzed using the principles of thematic analysis and a hybrid inductive and deductive approach. ETHICS AND DISSEMINATION: Through Clinical Trials Ontario, the Hamilton Integrated Research Ethics Board has reviewed and approved this protocol (Project ID: 3856). The University of Alberta has approved the parent portion of the trial (Project ID:00114894). Findings from this study will be disseminated through open-access publications in peer-reviewed journals and using social media. TRIAL REGISTRATION: Clinicaltrials.gov NCT05358990 . Registered on May 3, 2022.


Subject(s)
COVID-19 , Humans , Adult , Adolescent , SARS-CoV-2 , Randomized Controlled Trials as Topic , Surveys and Questionnaires , Ontario , Meta-Analysis as Topic
13.
A multidisciplinary approach to capability in age and ageing ; : 109-129, 2022.
Article in English | APA PsycInfo | ID: covidwho-2157931

ABSTRACT

The rapidly increasing size of the ageing population, and in particular older adults living alone, requires the incorporation of eHealth into social and healthcare services, in order to choose the best way to manage their needs and demands for health and medical care. The purpose of this brief scoping study is to describe and identify an important dimension in this context, namely eHealth literacy (eHL) and its relation to health-promoting behaviours among older adults within the capability theoretical framework. The chapter examines some aspects of eHL and recent research highlighting the importance of eHL and the direct correlation between eHL and quality of life for older adults within the capability context. To make this more specific and explicit, this study takes into consideration outstanding circumstances, such as those caused by a pandemic crisis, namely the coronavirus disease 2019 (COVID-19). Since the COVID-19 pandemic has required urgent action and rapid containment, it offers a unique opportunity to test and evaluate the readiness of healthcare systems and to rapidly develop, scale up and enhance eHealth for the benefit of older people. However, this comes with a price, which is the necessity to quickly and effectively navigate complex information environments and manage behavioural changes and health. (PsycInfo Database Record (c) 2022 APA, all rights reserved)

14.
Small Business Economics ; 59(4):1327-1350, 2022.
Article in English | ProQuest Central | ID: covidwho-2118333

ABSTRACT

The concept of the ‘discouraged’ borrower is well documented. In this paper, we consider whether smaller firms in the UK who have been previously rejected for bank loans have been scarred by the experience so badly that even in the presence of two exceptionally generous Covid-19 loan guarantee schemes, they still refuse to make an application. Furthermore, we also consider what happens when they do. As banks have either zero or minimal loss exposure, do they still maintain their normal strict lending protocols or do they relax their standards to fulfil the governments’ objective of supporting struggling businesses through the crisis? Our findings show that 72% of previously rejected borrowers are reluctant to request loans. We find some evidence that previously scarred firms faced such severe liquidity problems that they relaxed their distrust of banks during the Covid-19 crisis. However, their share of the government-guaranteed loan portfolio was slightly lower suggesting that banks were treating each new loan application on its merits.Plain English SummaryThe Covid-19 crisis hit smaller businesses so hard that even previously rejected borrowers were forced to apply for loans to keep them afloat. Previous loan rejections have not discouraged small businesses in the UK in applying for Covid-19 government-guaranteed loans. Banks have used the loan guarantee schemes to continue to supply loans to small business during the pandemic. Our paper analyses the important phenomenon of borrower scarring and discouragement, when potential debtors are self-excluded from the lending market because they have previous rejections or expect a negative bank response. We consider around 45,000 UK small businesses from 2018 to 2020. On the demand side, we find that the economic shock for small businesses during the pandemic dissipates the scarring effect. Specifically, we find that micro and small businesses had the highest loan demand in the first two quarters of the pandemic (from March 2020). On the supply side, we show that scarred borrowers were not routed onto Covid-19 government-guaranteed loan schemes. These findings show the importance of government-backed lending schemes for small businesses during crisis period.

15.
Assistive Technology Outcomes & Benefits ; 16(2):56-73, 2022.
Article in English | ProQuest Central | ID: covidwho-2012069

ABSTRACT

The COVID-19 pandemic has thrust scientific literature into the global spotlight this year, as information about the virus, how to keep safe, and how to get vaccinated has been continually updated at a rapid pace. Much of this information is being conveyed through infographics. This has resulted in an abundance of easy-to-grasp information for sighted people with no learning disabilities, but this positive impact has not been extended to people with visual or learning disabilities. In effect, these infographics often serve to further marginalize individuals with disabilities. Consistent methods for writing descriptions of images should be developed and implemented by first looking at how information moves from working memory to long-term memory, and then examining how cognitive fatigue can inhibit understanding of complex images and scientific information vital to individuals with disabilities. Considering how best to describe scientific images with concise alternative text and in plain language will have clear and immediate benefits for the health and well-being of those with print-related disabilities.

16.
2021 IEEE International Professional Communication Conference, ProComm 2021 ; 2021-October:125-129, 2021.
Article in English | Scopus | ID: covidwho-1922765

ABSTRACT

This paper describes a study that examined the extent to which COVID-19 information for nursing homes follows plain language guidelines. The study involved analysis of government information from the United States and Ireland, focusing on content from the Centers for Disease Control and Prevention (CDC) in the United States and the Health Service Executive (HSE) in Ireland. Preliminary findings suggest that most content incorporated some plain language guidelines, e.g. consistent terminology and use of headings. Some phrasing was ambiguous, however, and the majority of documents did not directly address nursing home residents, but rather visitors and staff. Documents did not include images, that might have helped to explain concepts. Further research is needed about how older populations process and use public health information, to ensure that content addresses them directly and in ways appropriate for their needs. © 2021 IEEE.

17.
Small Business Economics ; 59(1):117-142, 2022.
Article in English | ProQuest Central | ID: covidwho-1877921

ABSTRACT

During the economic slowdown caused by the financial crisis in 2008, grants for entrepreneurs were made available to support economic development. Whether such a policy instrument is effective for business development is a highly relevant question in the aftermath of the COVID-19. We evaluate the causal effects of small business development matching grants using a quasi-experimental approach. The grants were exclusively targeted to women entrepreneurs and provided during the recession after the financial crisis. Our findings demonstrate an increase in bank loans and a positive impact on turnover, value-added, capital, employment, and overall factor productivity for more experienced women entrepreneurs. As the grants are too small to have direct economic effects or indirect effects via the certification effect, they alleviate time and information constraints of women entrepreneurs. The cost-benefit analysis shows an increase in value-added that outweighs the scheme-related costs.Plain English SummaryThis study evaluates the effect of small public grants for women entrepreneurs. Grants were used for childcare and business consultancy costs to alleviate time and information constraints of women entrepreneurs. Benefiting from these grants resulted in higher bank loans. The women entrepreneurs on average invested more money in capital and had better performance measures like turnover and value-added. The effect was particularly evident among more experienced women entrepreneurs. The cost-benefit analysis shows grant-induced increase in value-added outweighs the scheme-related costs. The study implies small public grants for women entrepreneurs increase small firms’ growth, and these grants are in addition a cost-effective policy tool.

18.
J Clin Epidemiol ; 148: 104-114, 2022 08.
Article in English | MEDLINE | ID: covidwho-1814651

ABSTRACT

BACKGROUND AND OBJECTIVES: To develop a digital communication tool to improve the implementation of up-to-date COVID-19 recommendations. Specifically, to improve patient, caregiver and public understanding of healthcare recommendations on prevention, diagnoses and treatment. METHODS: Multi-stakeholder engagement design. In conjunction with the COVID-19 Recommendations and Gateway to Contextualization RecMap, we co-developed a stakeholder prioritization, drafting and editing process to enhance guideline communication and understanding. RESULTS: This paper presents the multi-stakeholder development process with three distinct plain language recommendation formats: formal recommendation, good practice statement, and additional guidance. Our case study of COVID-19 plain language recommendations PLRs addresses both public health interventions (e.g., vaccination, face masks) and clinical interventions (e.g., home pulse oximetry). CONCLUSION: This paper presents a novel approach to engaging stakeholders in improving the communication and understanding of published guidelines during the COVID-19 pandemic.


Subject(s)
COVID-19 , Humans , COVID-19/epidemiology , COVID-19/prevention & control , Pandemics/prevention & control , Caregivers , Masks , Public Health
19.
Small Business Economics ; 58(2):843-865, 2022.
Article in English | ProQuest Central | ID: covidwho-1653657

ABSTRACT

We assess the role of race in loans made through the Paycheck Protection Program (PPP). The PPP program, created by the U.S. government as a response to the Covid-19 pandemic, provides loans to small businesses so they can keep employees on their payroll. We argue that the historical record and PPP program design choices made it likely that many Black-owned businesses received smaller PPP loans than White-owned businesses. Using newly released data on the PPP program, we find that Black-owned businesses received loans that were approximately 50% lower than observationally similar White-owned businesses. The effect is marginally smaller in areas with more bank competition and disappeared over time as changes to the PPP program were implemented allowing for entry by fintechs and other non-traditional lenders.Plain English SummaryWe find that Black-owned businesses received loans through the Paycheck Protection Program that were approximately 50 percent lower than White-owned businesses with similar characteristics. However, this difference in loan size shrank over time as more non-bank lenders such as fintechs were allowed to participate in the program and began approving PPP loans. Loan size differences were also slightly smaller in zip codes containing a larger number of bank branches. These results are consistent with prior research which shows lending discrimination by commercial banks against Black borrowers. It is also consistent with studies showing that greater access to and competition among banks and other lenders can reduce discrimination. In light of these results we recommend that policy makers account for existing racial inequalities within banking or other systems in their program design to produce more equitable outcomes.

20.
Small Business Economics ; 58(2):769-805, 2022.
Article in English | ProQuest Central | ID: covidwho-1653656

ABSTRACT

Drawing on minority enclave theory and resilience theory in entrepreneurship, we test whether, with the onset of the COVID-19 pandemic, the self-employed lost more hours than the employed and whether traditionally disadvantaged self-employed racial minorities faced harsher penalties in the form of reduced hours of work. Though spatially concentrated ethnic minority colocations could improve business outcomes in the non-crisis period, with the pandemic affecting all the members in the enclave, the very dependencies in minority enclaves could be a liability. Using a large-scale survey during the COVID-19 pandemic conducted by the Brazilian government, we draw on a one-to-one nearest neighbor matched pair sample of 19,626 employed (public or private sector) and self-employed individuals, and control for industry-sector-interview-location fixed effects. The results show that self-employed people, compared to employed, reported a greater loss of hours. At the sample level, black self-employed people on aggregate lost 9,051 hours per month, and mixed race self-employed people on aggregate lost 27,880 hours per month. The disproportionate loss of work hours by the self-employed from racial minority groups during the COVID-19 pandemic in a developing country context calls for a closer examination and assessment of the long-term impact of COVID-19 on racial minorities.Plain English SummaryLarge-scale evidence from Brazil: racial minorities lost more hours per month than other groups during the COVID-19 pandemic. Racial minorities face systemic discrimination in setting up and developing their businesses, especially in developing countries. We test whether during the COVID-19 pandemic self-employed racial minorities in Brazil lost more hours of work relative to employed racial minorities. We create a matched sample of employed and self-employed individuals based on age, sex, education categories, COVID-19 self-reported symptom index, income deciles, house ownership categories, week of the interview, state of the interview, and industry. We find that across racial minority groups, the hours lost by the self-employed were substantive during the pandemic, signaling that Brazilian policymakers should pay greater attention to the relief funds allocated to and policies geared towards self-employed racial minorities.

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