Abstract

The tradeoff between short-term economic and public health has been very salient in debates surrounding U.S. government responses to COVID-19. But highly salient choices by very visible executive branch leaders, like state COVID-19 public health actions, have implications beyond current economic performance. We argue that by shaping perceptions of state governments, or state “reputations”, these responses may affect how individuals evaluate economic opportunities in different states. To examine this possibility, we conducted a conjoint experiment presenting subjects with different pairs of job opportunities varying many attributes of the location, job and the state governor’s response to COVID-19. We find that individuals evaluate job opportunities more favorably when a state governor has more aggressively mandated social distancing measures. These effects are largest for individuals concerned about COVID-19 and Democrats, but even Republicans prefer jobs in states where the governor took some meaningful action compared to making a purely symbolic statement. Our findings indicate that governors and their advisors should consider how their COVID-19 responses shape state reputations, which ultimately have consequences for economic performance beyond the immediate crisis.

Highlights

  • The tradeoff between short-term economic and public health has been very salient in debates surrounding U.S government responses to COVID-19

  • The debate has focused mostly on the short-term economic implications of public health actions, but we argue that there are potentially longer-term economic repercussions: pandemic responses may affect state reputations, Vwhich in turn affect how individuals evaluate economic opportunities in different states

  • Though salary is by far the most important consideration for potential job seekers, job seekers view career opportunities more favorably if they are located in a state where the governor took more aggressive action mandating social distancing, meaning that there is at least a short-term reputational effect to states for their COVID-19 responses

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Summary

Introduction

The tradeoff between short-term economic and public health has been very salient in debates surrounding U.S government responses to COVID-19. The debate has focused mostly on the short-term economic implications of public health actions, but we argue that there are potentially longer-term economic repercussions: pandemic responses may affect state reputations, Vwhich in turn affect how individuals evaluate economic opportunities in different states. We ask: do individuals evaluate job opportunities more (less) favorably if they are located in a state where the governor (did not) more aggressively mandated social distancing?

Results
Conclusion

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