Do comprehensive labor measures reduce the severity of the pandemic? Evidence from India

Purpose - As a developing country, India initiated several labor measures to contain the Covid-19 pandemic. This study analyzes the impact of the Covid-19-induced comprehensive labor measures by Indian states on the Case Fatality Ratios and Recovery Rates. Such an analysis will provide deeper insights into the importance of labor measures during a health emergency. It will also be a reality check to the existing National Health Policy. Design/methodology/approach - The study examines the four major aspects of labor measures on migration, social security, state-specific needs and health and human rights. The authors use these to formulate a composite labor measure index to comprehend the Covid-19-induced various labor measures. Additionally, the authors apply pooled ordinary least squares and panel random-effects models with the state-wise monthly data to examine the impact of Covid-19-induced labor measures on the severity of the pandemic. Findings - Covid-19-induced comprehensive labor measures reduce fatalities and increase recovery rates. In particular, the measures on labor migration, state-specific needs and health and human rights adopted by the Indian states successfully reduce the Covid-19 fatalities and improve the recovery rates. However, the measures taken to address social security have been ineffective in reducing the severity of the pandemic. The study results are robust to various other specifications. Research limitations/implications - The time period covered in this research is very brief and does not account for the qualitative impact of labor measures on the severity of the pandemic. This study specifically addresses the number of Covid-19-induced labor measures and not the resources allocated to their implementations or the number of people who benefited from the measures. Practical implications - This study emphasizes the need for subnational comprehensive labor measures to reduce the severity of the pandemic in developing countries. The study confirms the need for effective Covid-19-induced social security measures to cope with the pandemic in India. This study also ascertains the beneficial impact of the measures on migration, state-specific needs and health and human rights. Originality/value - The authors make a composite labor measure index that captures state-level Covid-19-induced labor measures on diverse aspects, namely migration, social security, state-specific need and health and human rights, hitherto unexplored. In addition, the authors analyze the impact of these labor measures on the severity of the pandemic.