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The economic costs of childhood socio-economic disadvantage in European OECD countries

Author

Listed:
  • Chris Clarke
  • Julien Bonnet
  • Manuel Flores
  • Olivier Thévenon

    (OECD)

Abstract

Growing up in socio-economic disadvantage has important and long-lasting effects on children’s lives. Children from disadvantaged households often fall behind in many areas of well-being and development, with effects that continue to limit their opportunities and outcomes – including their health and labour market outcomes – long after they reach adulthood. Drawing on Europe-wide survey data from 27 countries, this paper explores how childhood socio-economic disadvantage affects later adult labour market and health outcomes, and evaluates the country-level GDP-equivalent cost of childhood disadvantage due to lost employment, lost earnings, and lost health, as well as the costs of lost government revenue and benefit spending. Results point to large costs for societies from childhood socio-economic disadvantage, totalling on average the equivalent of 3.4% of GDP annually.

Suggested Citation

  • Chris Clarke & Julien Bonnet & Manuel Flores & Olivier Thévenon, 2022. "The economic costs of childhood socio-economic disadvantage in European OECD countries," OECD Papers on Well-being and Inequalities 9, OECD Publishing.
    • Handle: RePEc:oec:wiseaa:9-en
    DOI: 10.1787/8c0c66b9-en
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    Cited by:

    1. González-Gallardo, Sandra & Bárcena-Martín, Elena & Pérez-Moreno, Salvador & Luque, Mariano, 2024. "Social transfer policies and child poverty in European countries: Evaluating policy alternatives through a multiobjective programming model," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).

    More about this item

    Keywords

    children; education; families; health; inequality;
    All these keywords.

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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