The Impact of COVID‐19 on Education in Latin America: Long‐Run Implications for Poverty and Inequality

Abstract

The shock of the COVID‐19 pandemic affected the human capital formation of children and youths. As a consequence of this disruption, the pandemic is likely to imply permanent lower levels of human capital. This paper provides new evidence on the impact of COVID‐19 and school closures on education in Latin America by exploiting harmonized microdata from a large set of national household surveys carried out in 2020, during the pandemic. In addition, the paper uses microsimulations to assess the potential effect of changes in human capital due to the COVID‐19 crisis on future income distributions. The findings show that the pandemic is likely to have significant long‐run consequences in terms of incomes and poverty if strong compensatory measures are not taken soon.