school closures

So what is the actual economic impact of keeping schools closed this fall in the face of the uncertainty surrounding how to address the COVID-19 pandemic?

One factor is what happens when an adult caregiver is forced to stay home and attented to a child. In that scenario, the economic output that adult is essentially lost and an analysis of that loss using the “human capital method” ( or HCM) or the “friction cost method” (FCM).

A relatively recent study from the Harvard School of Public Health survey found that 51% of respondents who count school children among their household members said it was “likely” that at least one adult in their home would miss work if schools were forced to close for a stretch of two weeks.

In the U.S., up to 23% of all private sector workers live in households which include a child under 16 – and include no permanent stay-at-home adults.

The NIH says in a baseline scenario, more than 52% of these kinds of workers will miss at least some work hours to care for children and that in total 10% of total labor hours in the civilian U.S. economy will be lost during a period of extended school closure.

In the event a majority of workers can react to closures using informal childcare, some 3% of all labor-hours in the civilian U.S. economy will be lost.

The NIH says that given their baseline estimates, closing schools for a month will reduce the U.S. GDP to the tune of $43 billion dollars. A higher cost scenario sets that total loss at $47 billion dollars.

A study from the Brookings Institution reports similar numbers and impacts…

Annamarie Aveytia

By Annamarie Aveytia

Annamarie is our creative director and her experience includes more than 14 years experience in visual design and a background in B2B and B2C communications. A creative thinker able to manage multiple projects simultaneously, she collaborates closely with members of our marketing and creative teams to fully understand the scope of our project to develop campaign strategies. Placing data, storytelling and innovation at the wheel of driving brand strategy, she thrives on creating culturally impactful and meaningful user experiences. Annamarie earned her BFA in Graphic Design from Maryville University in St. Louis, MO, and she spends her free moments pursuing interests in automotive illustration, auto racing, equestrian sports, photography, film-making and piloting drones.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.