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Job Loss and Behavioral Change: The Unprecedented Effects of the India Lockdown in Delhi

Author

Listed:
  • Kenneth Lee

    (Energy Policy Institute at the University of Chicago in India)

  • Harshil Sahai

    (University of Chicago - Kenneth C. Griffin Department of Economics)

  • Patrick Baylis

    (University of British Columbia - Vancouver School of Economics)

  • Michael Greenstone

    (University of Chicago - Kenneth C. Griffin Department of Economics)

Abstract

On March 24, 2020, the Prime Minister of India announced the world's largest COVID-19 lockdown. We summarize the initial impacts of the lockdown for a representative sample of mostly poor and non-migrant workers in Delhi. Using Facebook mobility data, we show that intra-city movement dropped 80 percent following the announcement. Using microeconomic survey data, collected before and during the crisis, we highlight three patterns. First, the lockdown resulted in significant economic costs, with income and days worked falling by 57 and 73 percent, respectively. Second, the lockdown resulted in widespread compliance with public health directives: mask usage rose by 73 percentage points (pp); time spent indoors increased by 51 pp; smoking decreased by 13 pp; and handwashing rose by 10 pp. Third, the economic impacts of the lockdown were somewhat mitigated by government food assistance, which 36 percent of our sample accessed. Over the first seven weeks of the lockdown, we do not observe alarming levels of hunger, scarcity, access to medical care, or security. Yet in our data, concerns remain about mental health, supply chains, and personal savings, against the backdrop of arising infection rate. Moreover, it remains to be seen whether public health compliance will persist, as the novelty, fear, and media coverage of COVID-19 subside.

Suggested Citation

  • Kenneth Lee & Harshil Sahai & Patrick Baylis & Michael Greenstone, 2020. "Job Loss and Behavioral Change: The Unprecedented Effects of the India Lockdown in Delhi," Working Papers 2020-65, Becker Friedman Institute for Research In Economics.
  • Handle: RePEc:bfi:wpaper:2020-65
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    References listed on IDEAS

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    1. Coibion, Olivier & Gorodnichenko, Yuriy & Weber, Michael, 2020. "Labor Markets During the Covid-19 Crisis: A Preliminary View," Department of Economics, Working Paper Series qt7rx7t91p, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    2. Scott R Baker & Robert A Farrokhnia & Steffen Meyer & Michaela Pagel & Constantine Yannelis & Jeffrey Pontiff, 0. "How Does Household Spending Respond to an Epidemic? Consumption during the 2020 COVID-19 Pandemic," The Review of Asset Pricing Studies, Society for Financial Studies, vol. 10(4), pages 834-862.
    3. Alix Peterson Zwane & Michael Kremer, 2007. "What Works in Fighting Diarrheal Diseases in Developing Countries? A Critical Review," CID Working Papers 140, Center for International Development at Harvard University.
    4. Alexander W. Bartik & Marianne Bertrand & Zoë B. Cullen & Edward L. Glaeser & Michael Luca & Christopher T. Stanton, 2020. "How Are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey," NBER Working Papers 26989, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Czura, Kristina & Englmaier, Florian & Ho, Hoa & Spantig, Lisa, 2022. "Microfinance loan officers before and during Covid-19: Evidence from India," World Development, Elsevier, vol. 152(C).
    2. Arpit Gupta & Anup Malani & Bartosz Woda, 2021. "Inequality in India Declined During COVID," NBER Working Papers 29597, National Bureau of Economic Research, Inc.
    3. Himangshu Kumar & Manikantha Nataraj & Srikanta Kundu, 2022. "COVID-19 and Federalism in India: Capturing the Effects of State and Central Responses on Mobility," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(5), pages 2463-2492, October.
    4. Satoshi Tanaka, 2022. "Economic Impacts of SARS/MERS/COVID‐19 in Asian Countries," Asian Economic Policy Review, Japan Center for Economic Research, vol. 17(1), pages 41-61, January.
    5. Dhingra, Swati & Machin, Stephen, 2020. "The Crisis and Job Guarantees in Urban India," IZA Discussion Papers 13760, Institute of Labor Economics (IZA).
    6. Zarifhonarvar, Ali, 2022. "A Survey on the Impact of Covid-19 on the Labor Market," EconStor Preprints 265549, ZBW - Leibniz Information Centre for Economics.
    7. 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.
    8. 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.
    9. Tao Xu & Mengyuan Shao & Ruiquan Liu & Xiaoqin Wu & Kai Zheng, 2023. "Risk Perception, Perceived Government Coping Validity, and Individual Response in the Early Stage of the COVID-19 Pandemic in China," IJERPH, MDPI, vol. 20(3), pages 1-19, January.
    10. Michael Greenstone & Kenneth Lee & Harshil Sahai, 2021. "Indoor Air Quality, Information, and Socioeconomic Status: Evidence from Delhi," AEA Papers and Proceedings, American Economic Association, vol. 111, pages 420-424, May.
    11. Indervir Singh & Jagdeep Singh & Ashapurna Baruah, 2020. "Income and Employment Changes Under COVID-19 Lockdown: A Study of Urban Punjab," Millennial Asia, , vol. 11(3), pages 391-412, December.

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