American Economic Journal:
Macroeconomics
ISSN 1945-7707 (Print) | ISSN 1945-7715 (Online)
Aggregate and Intergenerational Implications of School Closures: A Quantitative Assessment
American Economic Journal: Macroeconomics
vol. 16,
no. 3, July 2024
(pp. 90–130)
Abstract
This paper quantitatively investigates the medium- and long-term macroeconomic and distributional consequences of school closures through intergenerational channels. The model economy is a dynastic overlapping-generations general equilibrium model in which schools, in the form of public education investments, complement parental investments in producing children's human capital. We find that unexpected school closure shocks have long-lasting adverse effects on macroeconomic aggregates and reduce intergenerational mobility, especially among older children. Higher substitutability between public and private investments induces smaller damages in the aggregate economy and the affected children's lifetime income while exacerbating negative impacts on intergenerational mobility and inequality.Citation
Jang, Youngsoo, and Minchul Yum. 2024. "Aggregate and Intergenerational Implications of School Closures: A Quantitative Assessment." American Economic Journal: Macroeconomics, 16 (3): 90–130. DOI: 10.1257/mac.20200442Additional Materials
JEL Classification
- D31 Personal Income, Wealth, and Their Distributions
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- I26 Returns to Education
- I28 Education: Government Policy
- J22 Time Allocation and Labor Supply
- J62 Job, Occupational, and Intergenerational Mobility; Promotion
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