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The Crisis and Job Guarantees in Urban India

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  • Dhingra, Swati
  • Machin, Stephen

Abstract

This paper uses a new field survey of low-wage areas of urban India to show that employment and earnings were decimated by the lockdown resulting from the Covid-19 crisis. It examines workers' desire for a job guarantee in this setting. Workers who had a job guarantee before the crisis were relatively shielded by not being hit quite so hard in terms of the increased incidence of job loss or working zero hours and earnings losses. A stated choice experiment contained in the survey reveals evidence that low-wage workers are willing to give up around a quarter of their daily wage for a job guarantee. And direct survey questions corroborate this, with informal, young and female workers being most likely to want a job guarantee, and to want it even more due to the current crisis.

Suggested Citation

  • Dhingra, Swati & Machin, Stephen, 2020. "The Crisis and Job Guarantees in Urban India," CEPR Discussion Papers 15334, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:15334
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    Cited by:

    1. Chakravorty, Bhaskar & Bhatiya, Apurav Yash & Imbert, Clément & Lohnert, Maximilian & Panda, Poonam & Rathelot, Roland, 2021. "Impact of COVID-19 Crisis on Rural Youth: Evidence from a Panel Survey and an Experiment," GLO Discussion Paper Series 909, Global Labor Organization (GLO).
    2. Afridi, Farzana & Mahajan, Kanika & Sangwan, Nikita, 2021. "Employment Guaranteed? Social Protection during a Pandemic," IZA Discussion Papers 14099, Institute of Labor Economics (IZA).
    3. Arpit Gupta & Anup Malani & Bartek Woda, 2021. "Explaining the Income and Consumption Effects of COVID in India," NBER Working Papers 28935, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    COVID-19; India; job guarantee; job vignettes; Urban labour markets;
    All these keywords.

    JEL classification:

    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics

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