Fig. 2.

GDP Responses to the Labor Supply Shock. Notes: The top panel of this figure displays the change in GDP following the labor supply shock described in Section 3. The first bar represents the change in GDP under trade, decomposed into domestic shock (dark blue) and transmission (beige bar). The second bar represents the change in GDP under renationalization. Tables A5 and A6 in Appendix B.3 display the specific numbers. The bottom panel decomposes the change in the reaction of GDP to the labor supply shock between the baseline trade economy (ln V_n) and the renationalized supply chains economy ($ln{V}_n^R$), according to the decomposition in Eq. (17). The purple bar is the total difference, the beige bar is the transmission, the red bar is the change in domestic GE, and the light green bar is the change in domestic PE. (For interpretation of the references to color in this figure legend, the reader is referred to the web version of this article.)