The Covid-19 pandemic has led to the closure of schools and colleges across the world to contain the spread of the disease. The closures have left billions of students out of school impacting learning and schooling levels. In the long-term, the pandemic may impact marginalised groups and hurt the future earnings of millions of students.
João Pedro Azevedo
João Pedro Azevedo, a development economist, tweeted on how the Covid-19 pandemic is expected to result in the loss of $1,408 in yearly earnings for students from the current cohort. Further, students may lose between $6,472 and $25,680 in earnings over their lifetime.
The statistics are based on a new report from the World Bank containing data from 157 countries on how the pandemic is impacting schooling and learning outcomes. The new report notes that the pandemic may exacerbate inequality and students from minority groups are more likely to be affected.
Students from the current cohort could, on average, face a reduction of $355, $872, or $1,408 in yearly earnings. In present value terms, this amounts to between $6,472 and $25,680 dollars in lost earnings over a typical student's lifetime. pic.twitter.com/uWKjyyxJl3
— João Pedro Azevedo (@jpazvd) June 18, 2020
Konstantina Beleli, an economist, shared an article on the European Union’s plans to levy digital service taxes on multinational companies if the US withdraws from negotiations at the Organization for Economic Cooperation and Development. The negotiations were initiated after the US announced its plans to probe countries that impose digital service taxes targeting US-based companies.
US Treasury Secretary Steven Mnuchin informed his British, Italian and Spanish peers of the US’ plans to pull out of the negotiations. European Commissioner for Economy Paolo Gentiloni noted that if a global consensus on taxation is not reached by the end of the year, the EU may retaliate with its own digital tax levy.
An EU levy on digital giants is coming if the U.S. withdrawal from global talks on taxation makes it impossible to get an international accord https://t.co/gY1cOU5C1h
— POLITICO (@politico) June 18, 2020
Timothy McBride, Bernard Becker Professor at Washington University, shared a tweet on the latest data from the US labor department that states that 1.5 million more workers have filed for unemployment benefits in the US in the second week of June.
The latest data indicates the 11th straight week of decline in applications since peaking at seven million in March. The job market also showed signs of recovery as 2.5 million jobs were added. The unemployment rate also declined to 13.3% from the earlier 14.7%.
BREAKING: 1.5 million Americans filed for NEW unemployment benefits last week.
3 months into this crisis, people are still getting laid off and over 29 million are receiving aid.
Fed Chair Powell urged Congress to extend aid, esp. for low and moderate income Americans.
— Heather Long (@byHeatherLong) June 18, 2020
Claudia Sahm, a macroeconomist, shared an article on how wealthy Americans are not spending as much as the lower-income group families. The article notes that the decline in spending by the wealthy may hinder economic recovery.
The decline in spending is attributed to reduction in discretionary spending on restaurants, theatre, or travelling, which is currently limited due to the lockdown restrictions and fears surrounding the spread of the Covid-19 disease.
The Rich Have Stopped Spending And That Has Tanked The Economy https://t.co/VYRulYt8KQ
— Dr. Exhausted asf😴 (@kestontnt) June 18, 2020