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Using Fast Frequency Household Survey Data to Estimate the Impact of Demonetisation on Employment

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  • Mahesh Vyas

Abstract

Centre for Monitoring Indian Economy Pvt. Ltd conducts a large longitudinal household survey, Consumer Pyramids Household Survey (CPHS). Since January 2016 it has been producing fast-frequency measures of unemployment by using the CPHS. This article attempts to understand the impact of demonetisation announced on 8 November 2016, if any, on employment by using the results from CPHS. We use data on two waves preceding demonetisation and two waves after demonetisation, that is, seven quarters—3 before and 4 after demonetisation—and also monthly and weekly data to understand the impact of demonetisation. The evidence indicates a substantial loss of jobs and labour participation after demonetisation. JEL: J640, J08, J210

Suggested Citation

  • Mahesh Vyas, 2018. "Using Fast Frequency Household Survey Data to Estimate the Impact of Demonetisation on Employment," Review of Market Integration, India Development Foundation, vol. 10(3), pages 159-183, December.
    • Handle: RePEc:sae:revmar:v:10:y:2018:i:3:p:159-183
    DOI: 10.1177/0974929218816586
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    Keywords

    Labour markets; India; hiring; employment; unemployment incidence; demonetisation;
    All these keywords.

    JEL classification:

    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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