as of December 2020, firm-level forecasts of sales revenue growth over the next year imply a continuation of recent changes, not a reversal. Firms hit most negatively during the pandemic expect (on average) to continue shrinking in 2021, and firms hit positively expect to continue growing. Third, our survey data say that COVID-19 shifted relative employment growth trends in favor of industries with a high capacity of employees to work from home, as measured by Dingel and Neiman (2020), and against industries with a low capacity.
They emphasize the reallocation effects of the virus. Of course, in the PSST framework, every macroeconomic event is a reallocation shock.