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Urban Exclusion: Rethinking Social Protection in the Wake of the Pandemic in India

Author

Listed:
  • Pallavi Choudhuri

    (National Council of Applied Economic Research)

  • Santanu Pramanik

    (Krea University)

  • Sonalde Desai

    (National Council of Applied Economic Research)

Abstract

The COVID-19 pandemic, and the consequent nationwide lockdown in India that began on March 25, 2020, caused a major disruption in the labour market, leading to the widespread loss of livelihoods and food insecurity. The findings from a telephonic survey of a representative sample of more than 3,000 households in the National Capital Region (NCR) also reveal a dramatic loss in earning capacity. The place of residence and occupation mediated the impact of the lockdown, with greater vulnerabilities witnessed amongst those engaged in informal employment, especially in urban areas. The Government rolled out a series of welfare measures in response to the widespread economic distress, with the provision of free foodgrains and cash transfers aimed at rehabilitating those who were the most affected. While the use of prior social registries enabled quick disbursement, our analysis shows that few households received both foodgrains and cash transfers, particularly in urban areas. Urban residents were also eight percentage points less likely to receive cash transfers as compared to their rural counterparts.

Suggested Citation

  • Pallavi Choudhuri & Santanu Pramanik & Sonalde Desai, 2024. "Urban Exclusion: Rethinking Social Protection in the Wake of the Pandemic in India," NCAER Working Papers 156, National Council of Applied Economic Research.
    • Handle: RePEc:nca:ncaerw:156
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    References listed on IDEAS

    as
    1. Thorat, Amit & Vanneman, Reeve & Desai, Sonalde & Dubey, Amaresh, 2017. "Escaping and Falling into Poverty in India Today," World Development, Elsevier, vol. 93(C), pages 413-426.
    2. Rajesh Raj Natarajan & Simone Schotte & Kunal Sen, 2020. "Transitions between informal and formal jobs in India: Patterns, correlates, and consequences," WIDER Working Paper Series wp-2020-101, World Institute for Development Economic Research (UNU-WIDER).
    3. Vivi Alatas & Abhijit Banerjee & Arun G. Chandrasekhar & Rema Hanna & Benjamin A. Olken, 2016. "Network Structure and the Aggregation of Information: Theory and Evidence from Indonesia," American Economic Review, American Economic Association, vol. 106(7), pages 1663-1704, July.
    4. Ravi Kanbur, 2017. "Informality: Causes, consequences and policy responses," Review of Development Economics, Wiley Blackwell, vol. 21(4), pages 939-961, November.
    5. Anushree Sinha & Ravi Kanbur, 2012. "Introduction: Informality—Concepts, Facts and Models," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 6(2), pages 91-102, May.
    6. Vivi Alatas & Abhijit Banerjee & Rema Hanna & Benjamin A. Olken & Ririn Purnamasari & Matthew Wai-Poi, 2016. "Self-Targeting: Evidence from a Field Experiment in Indonesia," Journal of Political Economy, University of Chicago Press, vol. 124(2), pages 371-427.
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    More about this item

    Keywords

    Informal Employment; Income; Social Protection; Cash Transfer; COVID-19; India;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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