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The crisis and job guarantees in urban India

Author

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  • Dhingra, Swati
  • Machin, Stephen Jonathan
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 Jonathan, 2020. "The crisis and job guarantees in urban India," LSE Research Online Documents on Economics 108222, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:108222
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    File URL: http://eprints.lse.ac.uk/108222/
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    Cited by:

    1. Tondl, Gabriele, 2021. "Development in the Global South at risk: Economic and social effects of the COVID-19 pandemic in developing countries," Working Papers 65, Austrian Foundation for Development Research (ÖFSE).
    2. Swati Dhingra & Fjolla Kondirolli, 2021. "City of dreams no more, a year on: worklessness and active labour market policies in urban India," CEP Covid-19 Analyses cepcovid-19-022, Centre for Economic Performance, LSE.
    3. Arpit Gupta & Anup Malani & Bartosz Woda, 2021. "Inequality in India Declined During COVID," NBER Working Papers 29597, National Bureau of Economic Research, Inc.
    4. Partha Chatterjee & Aakash Dev, 2023. "Labour Market Dynamics and Worker Flows in India: Impact of Covid-19," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 66(1), pages 299-327, March.
    5. Swati Dhingra & Fjolla Kondirolli, 2023. "Jobless and Stuck: Youth Unemployment and COVID-19 in India," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 71(3), pages 580-610, September.
    6. Nikita Sangwan & Swati Sharma, 2022. "Labor Market Shocks, Social Protection And Women’s Work," IEG Working Papers 453, Institute of Economic Growth.
    7. Farzana Afridi & Kanika Mahajan & Nikita Sangwan, 2022. "Employment Guaranteed? Social Protection During a Pandemic," Oxford Open Economics, Oxford University Press, vol. 1, pages 1-15.
    8. Chakravorty, Bhaskar & Bhatiya, Apurav Yash & Imbert, Clément & Lohnert, Maximilian & Panda, Poonam & Rathelot, Roland, 2023. "Impact of the COVID-19 crisis on India’s rural youth: Evidence from a panel survey and an experiment," World Development, Elsevier, vol. 168(C).
    9. Dhingra, Swati & Kondirolli, Fjolla, 2023. "Jobless and stuck: youth unemployment and COVID-19 in India," LSE Research Online Documents on Economics 119619, London School of Economics and Political Science, LSE Library.
    10. 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.
    11. Dang, Hai-Anh H. & Nguyen, Cuong Viet & Carletto, Calogero, 2023. "Did a successful fight against COVID-19 come at a cost? Impacts of the pandemic on employment outcomes in Vietnam," World Development, Elsevier, vol. 161(C).
    12. Hai-Anh H. Dang & Cuong Viet Nguyen, 2024. "Agricultural Production as a Coping Strategy during the Covid-19 Pandemic? Evidence from Rural Viet Nam," Working Papers DP-2023-23, Economic Research Institute for ASEAN and East Asia (ERIA).
    13. 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).
    14. Palacios-Lopez,Amparo & Newhouse,David Locke & Pape,Utz Johann & Khamis,Melanie & Weber,Michael & Prinz,Daniel, 2021. "The Early Labor Market Impacts of COVID-19 in Developing Countries : Evidence from High-Frequency Phone Surveys," Policy Research Working Paper Series 9510, The World Bank.

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    More about this item

    Keywords

    job guarantee; india; urban labour markets; job vignettes; Covid-19; coronavirus;
    All these keywords.

    JEL classification:

    • 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 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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