Aggregate and intergenerational implications of school closures: a quantitative assessment
Aggregate and intergenerational implications of school closures: a quantitative assessment
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.
Jang, Youngsoo
616d2665-221f-4832-9861-7fb2b1388347
Yum, Minchul
23e96e8e-0dbd-4b6a-b3d1-538ab7d008b4
3 June 2023
Jang, Youngsoo
616d2665-221f-4832-9861-7fb2b1388347
Yum, Minchul
23e96e8e-0dbd-4b6a-b3d1-538ab7d008b4
Jang, Youngsoo and Yum, Minchul
(2023)
Aggregate and intergenerational implications of school closures: a quantitative assessment.
American Economic Journal: Macroeconomics.
(doi:10.2139/ssrn.3857687).
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.
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JY_SchoolClosure_AEJrev_Final
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SSRN-id3857687 (1)
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Accepted/In Press date: 11 May 2023
e-pub ahead of print date: 3 June 2023
Published date: 3 June 2023
Identifiers
Local EPrints ID: 477371
URI: http://eprints.soton.ac.uk/id/eprint/477371
ISSN: 1945-7707
PURE UUID: 44591d29-95e9-4b3c-845e-6ebb4a4caf5d
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Date deposited: 05 Jun 2023 16:46
Last modified: 17 Mar 2024 04:18
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Author:
Youngsoo Jang
Author:
Minchul Yum
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