The Impact of COVID-19 on the Household Economy of India

Bino Paul (), Unmesh Patnaik (), Kamal Kumar Murari (), Santosh Kumar Sahu and T. Muralidharan ()
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Bino Paul: Tata Institute of Social Sciences
Unmesh Patnaik: Tata Institute of Social Sciences
Kamal Kumar Murari: Tata Institute of Social Sciences
T. Muralidharan: TMI Group

The Indian Journal of Labour Economics, 2021, vol. 64, issue 4, No 2, 867-882

Abstract: Abstract COVID-19 has disrupted the Indian economy. Government-enforced lockdown to restrict the spread of infection has impacted the household economy in particular. We combine aggregates from national income accounts and estimates from the microdata of a labour force survey covering more than 0.1 million households and 0.4 million individuals. The aggregate daily loss to households is USD 2.42 billion. While loss to earnings accounts for 72% of the total, the rest 28% is wage loss. Service-based activities account for two thirds of wage loss, and natural resource-based activities are responsible for most of the earning loss. The dominance of informal job contracts and job switching in labour markets intensifies this, with the most vulnerable group consisting of 57.8 million in casual engagement, who have a high degree of transition from one stream of employment to another on a daily basis.

Keywords: COVID-19; Household economy; Loss; Vulnerability; India (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s41027-021-00352-8

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