New Working Paper: The Long-Term Distributional and Welfare Effects of Covid-19 School Closures (Alexander Ludwig)


Using a structural life-cycle model, we analyze the long-term income, welfare- and distributional consequences of school closures due to Covid-19 on children. Parental reactions reduce the negative impact of school closures on children, but do not fully offset it. On average, long-term earnings losses are about 1% for all children. Those losses are larger for younger children and for children from low education and asset poor parents.

Link to paper