Covid-19 has had wide-reaching effects on the economy, but one of the most visible has been the enforced lockdowns, which have led to school closures, the cancellation of examinations, and the introduction of remote learning. The impact on education is likely to be felt for years to come, and may have unequal impacts depending on individuals’ socioeconomic background.
Education is critical for developing human capital. Higher levels of human capital are associated with higher productivity, and higher overall GDP. By observing the impact of random shocks to education (e.g. strikes, or natural disasters leading to school closures), it is possible to place a value on the loss of education. Research from the World Bank suggests that, with a (global) 5-month shutdown of schooling, the overall present value of the reduction in income due to a loss of schooling would be of the order of $10 trillion.
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