Abstract
The national Beveridge curve shifted outward significantly during the COVID-19 pandemic (2020M4–2022M4) compared to the pre-pandemic period (2009M7–2020M3), but the underlying determinants remain debated. This paper investigates these drivers using cross-sectional variation across states and industries. We introduce a novel geometric measure to quantify shifts, defined as the distance along the $45$-degree line between pre-pandemic and pandemic-era curves. Industry-level analysis shows larger shifts in sectors with lower wages and limited remote-work options. Through a Diamond-Mortensen-Pissarides framework decomposition, we demonstrate that changes in matching efficiency and separation rate correlate with these industry traits respectively. State-level shifts strongly associate with industry composition and COVID-19 infection rates. Our findings suggest that expanded unemployment insurance, limited telework capacity, and COVID-19 severity jointly drove the aggregate Beveridge curve shift during the pandemic.