The outbreak of COVID-19 has affected men and women worldwide. The gender dimension of COVID-19 has attracted the attention of researchers and policymakers: while women seem to be less severely hit by the virus and are more compliant with the restricting rules imposed to reduce the spread of the contagion, they risk to suffer more the economic consequences of the pandemic, because they are more vulnerable on the labor market and because they are carrying on most of the burden of housework and childcare which increased substantially during the lockdown. Public policies are required to address the emergency and to deal with its gender implications. Anecdotal evidence suggests that women leaders have performed better than men in dealing with the emergency. This paper explores the evidence on the gender dimension of the pandemic under a new perspective proposed by Profeta (2020), focused on the double relationship between gender equality and public policy: on one side, I show which policies can support gender equality in times of COVID-19 and, on the other side, I explore whether women leadership can promote successful measures. While the evidence provided is only suggestive, future studies should assess causal relationships. (JEL codes: J16 and J18).
Based on a survey (7-13 April 2020) we evaluate the reaction of Swiss firms towards the COVID-19 crisis. Firms show little pro-active reactions towards the crisis, but decrease their business activities. The firms in the survey report that the decline in foreign demand is the single most important reason for their deteriorating business situation. Firms that faced a more difficult business situation before the crisis are affected more severely during the crisis. Moreover, we investigate the impact of the Swiss federal loan program (Bundeshilfe) on the business activities. To this end, we develop a stylized theoretical model of financially constrained heterogeneous firms. We find that policy makers face a trade-off between immediate higher unemployment rates and long-term higher public spending. The former arises from a combination of a too strong economic impact of the COVID-19 lockdown (demand drop) and too low levels of loans provided. Nevertheless, providing (too) high levels of loans to firms creates zombie firms that are going to default in the future leading to an increase in public spending. (JEL codes: D22, D25, D84, and G33).