Category: Economics Essay

During an economic calamity, the economic slowdown is associated with a decrease in wage rates as well as the private and public fund availability. Such a situation affects student’s educational outcomes including school enrollment, attendance as well as performance. This paper Begins by providing a theoretical framework for grasping how economic crisis situation has an effect on education results which are affected by the parental response to child labor market inclusive of the school quality. Next, this paper reviews the impact of the crises on the outcome of the child’s education. Also, a crisis has an effect on children’s labor whether in the labor market or in a household. According to economic studies, a teen is exposed to the following during an economic meltdown: The decrease in adult earnings makes it difficult for the parents to put up with the educational costs for example tuition, fees, supplies, uniforms, and private tuition. Consequently, educational outcomes are also hampered with as the child may be withdrawn from school. Another effect is that adult income reduction may force the parents to rely on child labor. On the other hand, a child who was already a child laborer may be made to work for a longer time. This augment in child labor working hours goes on to harm the outcome in his or her education as the increased labor drains the child physically as well as emotionally hence a resultant decrease in study hours (Authors University of Pittsburgh. University Center for International Studies, American Political Science Association). Moreover, parents who rely on child labor may reduce the child wage by increasing the working hours which is likely to harm the child in terms of the school results.

A decrease in hourly or daily wages of the parent may compel them to work for longer hours, hence reducing the time that a parent or guardian can allocate to helping their child with their homework, reading, or other education-related activities. Sensing a weaker manual labor market prediction from a school quality decline, parents may possibly pull out their child from learning institutions or become less loyal of their children’s education. The hypothesis also projects that the child can have two effects which are positive during a crisis: a deduction in child wages may cause the child labor to be less striking for. Parents who might make the child to substitute the labor with education thus improving the outcome of education. Parents may also become more encouraging of their children education if the crisis convinces them that the less-educated laborers suffer more as compared to the educated workers. The higher learning institutions have also been hit hard by the economic crises which have enveloped the United States.

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As a result, many institutions are finding alternative ways on which to cut on their running cost so as to keep their schools going. Taking an example of the Arizona State the newly appointed governor Jan Brewer approved a bill meant to take away funds from three institutions found in that state according to reports by an Arizona newspaper. Back in the year 2008, there was an experience of a blanket of hiring freeze that affected almost every Tucson campus department. Also, the University has compiled many academic departments and is even thinking of closing down certain programs for some time. These changes scare many undergraduates from the campus. Many of these students are anxious that the projected changes will have an effect on their ability to finish their education on time. Some of these changes signify that some programs will cease being offered, which could denote staying longer in the colleges in order to finish their education. Many students have expressed their discontent with the looming changes. Before the approval of the changes by the government, students from the three affected universities in the Arizona State held demonstrations on their campuses as well as at the State Capitol. Sadly, their pleas went on deaf ears. They should nevertheless take heart as other students from various institutions are facing the same problems. Unfortunately, when a budget there is a budget cut in education, students endure reason being many needed resources became unattainable. However, the budget cuts rarely, have an effect on athletes’ in institutions.

At Arizona University, they are thinking of closing some of the campus libraries and reducing the operating of the main library. Hence, students are unable to assess valuable information. The recent breakdown of many key financing institutions, general credit squeeze, and the big plunge in the stock prices have caused what is to many the worst economic crises since the 1930s Great Depression. This crisis has made and will continue having a great impact on the many economic sectors inclusive of the higher education level which accounts of about 3 percent of America’s domestic production. Most comments concerning the consequences of this economic crisis mostly on the higher education have focused mostly on the possibility of the drying up of the student’s loans. However, the impact of the student’s abilities to continue with their learning will extend to their families abilities to use their home equities to pay for learning expenses. The economic crisis will also include extensive ramifications for various aspects of instituting financing including the pricing of the universities and colleges. There are three categories of Students loan in America. Two of this was formed in the legislation of the Federal. The biggest students borrowing source in America is the federal guarantee program which was formed back in 1965.

These loans account for nearly half of the American student population loans which is about 100billion dollars annually. However, based on the 2007/08 statistics of the academic year, the present financial calamity has also affected learning institutions. The volume of the student’s loan increased by at least 10 percent between the 2006/07 and the 2007/08 academic years whereas the private loan stagnated. This is an indicator that the borrowing increased at a time when the crises were looming.

In the following years, students borrowing have greatly been affected due to a drop in financial availability. In spite of the changed in higher learning institutions, learners have other ways of continuing with their educational pursuit. Some institutes doing away with unnecessary costs so as to compensate for the expected increase in students in pursuit of financial aid. For example, Boston College is reviewing its budget to strengthen its reserves for financial aid while Princeton and Tufts are proposing of spending millions of money on student assistance the following next year, according to Boston Globe reports. The changes may require students thinking of attending colleges which are close home to think about moving away so as to gain from these concessions. The present economic catastrophe has affected all the population areas, including higher education institutions. As universities forfeit student funds, many of the students have to leave their comfort zones so as to get a college degree at an affordable price and on time. This will require researching many institutes to find those that suit their needs and finance. The discussion up to this point shows that there are certain elements that exacerbate a child’s education and others that make educational outcomes better during a crisis. The overall effect of an economic cris