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The Earnings and Conversion Gaps for Persons with Disabilities: Evidence from India

Author

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  • Ajay Mahal

    (Ajay Mahal (corresponding author) is Professor of Economics and Global Health Systems Research at the Nossal Institute for Global Health, University of Melbourne, Carlton, Victoria, Australia. E-mail: ajay.mahal@unimelb.edu.au)

  • Anup Karan

    (Anup Karan is a Former Additional Professor at the Public Health Foundation of India, Gurugram, Haryana, India. E-mail: karan.anup@gmail.com)

  • Marie Ishida

    (Marie Ishida is a PhD Scholar at the Nossal Institute for Global Health, University of Melbourne, Carlton, Victoria, Australia. E-mail: ishida.m@unimelb.edu.au)

  • Fairlene Soji

    (Fairlene Soji is Director (Impact and Knowledge Management) at CBM India Trust, Bengaluru, Karnataka, India. E-mail: fairlene.soji@cbmindia.org)

  • Suhaib Hussain

    (Suhaib Hussain is a PhD Scholar at the Indian Institute of Public Health-Delhi, Public Health Foundation of India, Gurugram, Haryana, India. E-mail: suhaibbh@gmail.com)

  • Sara Varughese

    (Sara Varughese is Managing Trustee at CBM India Trust, Bengaluru, Karnataka, India. E-mail: sara.varughese@cbm.org)

  • Nathan Grills

    (Nathan Grills is a Professor at the Nossal Institute for Global Health, University of Melbourne, Carlton, Victoria, Australia. E-mail: ngrills@unimelb.edu.au)

  • Thakur Dhariyal

    (Thakur Dhariyal is an Advisor at CBM India Trust, Bengaluru, Karnataka, India. E-mail: tddhariyal@gmail.com)

  • Bruce Bonyhady

    (Bruce Bonyhady is Director at the Melbourne Disability Institute Melbourne Disability Institute, University of Melbourne, Parkville, Victoria, Australia. E-mail: bruce.bonyhady@unimelb.edu.au)

Abstract

We evaluate the earnings and conversion disadvantages that persons with disabilities face in India, which has amongst the highest numbers of persons with disabilities globally. Our study is unique in that we use two major nationally representative household surveys consisting of over 85,000 households, alongside a qualitative study to explore the nature and the magnitude of these disadvantages. We find that persons with disabilities and the households they live in experience lower earnings (earnings gap) and incur higher costs of translating those earnings into living standards (conversion gap). Because of such costs, persons with disabilities and the households to which they belong are likely to be at disproportionately higher risk of being poor. These disadvantages vary across gender, by rural–urban residence and by severity of disability and considerably exceed government contributions to the well-being of people with disabilities. JEL Codes: I15, I18, I31, J3 J7

Suggested Citation

  • Ajay Mahal & Anup Karan & Marie Ishida & Fairlene Soji & Suhaib Hussain & Sara Varughese & Nathan Grills & Thakur Dhariyal & Bruce Bonyhady, 2025. "The Earnings and Conversion Gaps for Persons with Disabilities: Evidence from India," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 19(1), pages 7-49, May.
    • Handle: RePEc:sae:mareco:v:19:y:2025:i:1:p:7-49
    DOI: 10.1177/00252921251365022
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    Keywords

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    JEL classification:

    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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