The shutdown of the education system is costing the economy around NIS 2.6 billion per week, the Bank of Israel says.
The BOI’s calculation is based on the assumption that 408,000 households have to leave one parent at home to look after children. According to the BOI, Israel has 370,000 households with a child up to the age of four and a further 110,000 households have children between the ages of five and nine, but without a sibling over the age of 15 who can look after them. The bank assumes that 15% of the total 480,000 households are able to provide a solution, thus leaving the number of 408,000 households.
In addition, the BOI says that the shutdown will cost a further estimated NIS 1 billion per week in future productivity as a result of skills that remained untaught.
The BOI says that while it is not possible to accurately gauge the cost to the economy of the “loss of educational production,” the education system has a “central role in shaping future generations which is reflected inter alia in the economy’s long-term productivity.”
The BOI notes that its estimate of NIS 1 billion per week does not take into account the beneficial impact of distance learning.
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From the Liveblog of
Thursday, April 23, 2020
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