Workers at Risk : Panel Data Evidence on the COVID-19 Labor Market Crisis in India
The COVID-19 pandemic is having unequal impacts. Research has highlighted that across race, gender, age, and income groups, the health and economic consequences of this crisis are far from uniform and other preexisting inequalities have been exacerbated. This paper focuses on the differential i...
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2021
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okr-10986-352922022-09-20T00:09:14Z Workers at Risk : Panel Data Evidence on the COVID-19 Labor Market Crisis in India Bussolo, Maurizio Kotia, Ananya Sharma, Siddharth INFORMAL WORKER LABOR MARKET INFORMALITY CORONAVIRUS COVID-19 PANDEMIC IMPACT UNEMPLOYMENT INCOME LOSS The COVID-19 pandemic is having unequal impacts. Research has highlighted that across race, gender, age, and income groups, the health and economic consequences of this crisis are far from uniform and other preexisting inequalities have been exacerbated. This paper focuses on the differential impact on the formal and informal segments of the labor market in India, using data from a large household panel survey and employing a difference-in-differences event study approach. Within the same industry and district, initially informal wage workers were significantly more vulnerable to the loss of employment than initially formal workers during the early phase of COVID-19 (April 2020). Furthermore, income declined significantly more for households whose head worked as an informal wage worker than for households with a formally employed head. However, the post-COVID employment and income differentials between informal and formal workers narrowed after April 2020. By July 2020, the decline in income (from the pre-COVID baseline of February 2020) was not significantly different across households with informally and formally employed heads, suggesting that while informal workers were affected more severely by the early COVID-19 shock, they also recovered faster from it. 2021-03-18T14:40:37Z 2021-03-18T14:40:37Z 2021-03 Working Paper http://documents.worldbank.org/curated/en/694351615916424727/Workers-at-Risk-Panel-Data-Evidence-on-the-COVID-19-Labor-Market-Crisis-in-India http://hdl.handle.net/10986/35292 English Policy Research Working Paper;No. 9584 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper South Asia India |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
INFORMAL WORKER LABOR MARKET INFORMALITY CORONAVIRUS COVID-19 PANDEMIC IMPACT UNEMPLOYMENT INCOME LOSS |
| spellingShingle |
INFORMAL WORKER LABOR MARKET INFORMALITY CORONAVIRUS COVID-19 PANDEMIC IMPACT UNEMPLOYMENT INCOME LOSS Bussolo, Maurizio Kotia, Ananya Sharma, Siddharth Workers at Risk : Panel Data Evidence on the COVID-19 Labor Market Crisis in India |
| geographic_facet |
South Asia India |
| relation |
Policy Research Working Paper;No. 9584 |
| description |
The COVID-19 pandemic is having unequal impacts.
Research has highlighted that across race, gender, age, and
income groups, the health and economic consequences
of this crisis are far from uniform and other preexisting
inequalities have been exacerbated. This paper focuses on
the differential impact on the formal and informal segments
of the labor market in India, using data from a large household
panel survey and employing a difference-in-differences
event study approach. Within the same industry and district,
initially informal wage workers were significantly
more vulnerable to the loss of employment than initially
formal workers during the early phase of COVID-19 (April
2020). Furthermore, income declined significantly more
for households whose head worked as an informal wage
worker than for households with a formally employed head.
However, the post-COVID employment and income differentials
between informal and formal workers narrowed
after April 2020. By July 2020, the decline in income (from
the pre-COVID baseline of February 2020) was not significantly
different across households with informally and
formally employed heads, suggesting that while informal
workers were affected more severely by the early COVID-19
shock, they also recovered faster from it. |
| format |
Working Paper |
| author |
Bussolo, Maurizio Kotia, Ananya Sharma, Siddharth |
| author_facet |
Bussolo, Maurizio Kotia, Ananya Sharma, Siddharth |
| author_sort |
Bussolo, Maurizio |
| title |
Workers at Risk : Panel Data Evidence on the COVID-19 Labor Market Crisis in India |
| title_short |
Workers at Risk : Panel Data Evidence on the COVID-19 Labor Market Crisis in India |
| title_full |
Workers at Risk : Panel Data Evidence on the COVID-19 Labor Market Crisis in India |
| title_fullStr |
Workers at Risk : Panel Data Evidence on the COVID-19 Labor Market Crisis in India |
| title_full_unstemmed |
Workers at Risk : Panel Data Evidence on the COVID-19 Labor Market Crisis in India |
| title_sort |
workers at risk : panel data evidence on the covid-19 labor market crisis in india |
| publisher |
World Bank, Washington, DC |
| publishDate |
2021 |
| url |
http://documents.worldbank.org/curated/en/694351615916424727/Workers-at-Risk-Panel-Data-Evidence-on-the-COVID-19-Labor-Market-Crisis-in-India http://hdl.handle.net/10986/35292 |
| _version_ |
1764482728888107008 |