09.11.2020

Economic Consequences of School Closure

WIFO Research Brief by Julia Bock-Schappelwein and Ulrike Famira-Mühlberger

There is profound empirical evidence of the positive effect of school attendance and acquired skills on individual and social well-being. School closures over several weeks have proven to have negative effects on the later labour market success of the children concerned.

Macroeconomically, education is the most important determinant for the development of economic growth and thus for the long-term prosperity of a society, since education is an investment in the knowledge and skills of the population. Thus, there is very much at stake for the education policy in the COVID-19 crisis – at the individual level, but also at the level of society as a whole.