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Aggregate and Distributional Effects of School Closure Mitigation Policies: Public versus Private Education

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  • Mahler, Lukas
  • Yum, Minchul

Abstract

Recent studies highlight the adverse effects of school closures in terms of average lifetime income loss, cross-sectional inequality, and intergenerational mobility. We use a simple model of human capital formation to compare two policy instruments that can address these negative consequences: direct public provision, such as through an extension of school time, and the provision of private education subsidies. We demonstrate that the effects of these policies on inequality and mobility depend crucially on the degree of substitutability between private and public inputs in the production of human capital.

Suggested Citation

  • Mahler, Lukas & Yum, Minchul, 2024. "Aggregate and Distributional Effects of School Closure Mitigation Policies: Public versus Private Education," CEPR Discussion Papers 18726, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:18726
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    1. Nicola Fuchs-Schündeln & Dirk Krueger & André Kurmann & Etienne Lalé & Alexander Ludwig & Irina Popova, 2023. "The Fiscal and Welfare Effects of Policy Responses to the Covid-19 School Closures," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 71(1), pages 35-98, March.
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    More about this item

    Keywords

    School closures; Inequality; Intergenerational mobility; Parental investments; Substitutability;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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