Abstract
<ns3:p>Did people reduce their social interactions as a result of the pandemic, restrictive lockdown policies, or both? What was the impact of reduced social interactions on local employment? Importantly, why did unemployment spike during the first wave of the pandemic, but gradually decline thereafter, even though the outbreak was much more severe during the second wave? In this note, we attempt to answer these questions by exploiting newly available data on hours worked among small firms at the industry-county-state-week level.</ns3:p>
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