Average child welfare loss from the schooling and income shock is −0.75% in consumption-equivalent terms, with 87% attributed to the school closures themselves¶

Claim · All claims
Evidence · 1 study · theoretical r3 · q2
Currency · newest study 2020 · not yet checked against its sources · not reviewed by a person · overdue for a recheck since 2025: baselines and conditions change

Subclaims¶

q2 i? Measured as consumption-equivalent variation, the average welfare loss of children is −0.75%, with 87% of losses directly attributed to school closures and the remainder to the parental income recession. → Nicola Fuchs-Schündeln 2020

Evidence¶

Nicola Fuchs-Schündeln 2020¶

Nicola Fuchs-Schündeln, Dirk Krueger, Alexander Ludwig, and Irina Popova. (2020). The Long-Term Distributional and Welfare Effects of Covid-19 School Closures. NBER Working Paper 27773. http://www.nber.org/papers/w27773

q2 · i? · theoretical · r3

Welfare decomposition in the structural simulation: consumption-equivalent variation of −0.75% on average, with "87% of losses being directly attributed to the school closures" and the rest to the recession income shock to parents.

"the average welfare loss of children from the (deep but highly temporary) Covid schooling and parental income shock amounts to −0.75%, with 87% of losses being directly attributed to the school closures"

Discussion¶

Related Claims¶

• Model simulations imply Covid-19 school closures plus recession raise the future share of children without a high school degree by 3.8% and reduce the college-degree share by 2.7% — related
• Children with poorer parents suffer more, and children of high school educated parents experience the largest welfare losses — related
• Adverse impacts of school closures are most pronounced for younger school-age children, driven by self-productivity and dynamic complementarity in human capital production — related
• Parents endogenously raise investments in response to school closures but do not fully offset the lost public inputs — related