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

Author

Listed:
  • Bino Paul

    (Tata Institute of Social Sciences)

  • Unmesh Patnaik

    (Tata Institute of Social Sciences)

  • Kamal Kumar Murari

    (Tata Institute of Social Sciences)

  • Santosh Kumar Sahu

    (Indian Institute of Technology Madras)

  • T. Muralidharan

    (TMI Group)

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.

Suggested Citation

  • Bino Paul & Unmesh Patnaik & Kamal Kumar Murari & Santosh Kumar Sahu & T. Muralidharan, 2021. "The Impact of COVID-19 on the Household Economy of India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(4), pages 867-882, December.
    • Handle: RePEc:spr:ijlaec:v:64:y:2021:i:4:d:10.1007_s41027-021-00352-8
    DOI: 10.1007/s41027-021-00352-8
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    References listed on IDEAS

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    Cited by:

    1. Oindrila Chatterjee & Balagopal Gopalakrishnan & Sanket Mohapatra, 2023. "Gold in household portfolios during a pandemic: Evidence from an emerging economy," IIMA Working Papers WP 2023-06-01, Indian Institute of Management Ahmedabad, Research and Publication Department.

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