Research / BFI Working PaperDec 17, 2021

Inequality in India Declined during COVID

Arpit Gupta, Anup Malani, Bartosz Woda

We use a large, representative panel data set from India with monthly data on household finances to examine the incidence of economic harms during the COVID pandemic. We observe a sharp spike in poverty, peaking during India’s sharp but short lockdown. However, there was a striking decrease in income inequality outside the lockdown. There was a smaller decrease in consumption inequality, likely due to consumption smoothing. Evidence supports two mechanisms for the decline in income inequality: the capital income of top-quartile earners covaries more with aggregate income, and demand for labor fell more for higher quartiles.

More Research From These Scholars

BFI Working Paper Feb 23, 2018

Can Blockchain Solve the Holdup Problem in Contracts?

Anup Malani, Richard Holden
Topics:  Technology & Innovation
BFI Working Paper Mar 14, 2022

Allocating Scarce Information

Richard T. Holden, Anup Malani, Chris Teh
Topics:  Uncategorized
BFI Working Paper Jan 21, 2022

Vaccine Allocation Priorities Using Disease Surveillance and Economic Data

Anup Malani, Satej Soman, Sabareesh Ramachandran, Alice Chen, Darius Lakdawalla
Topics:  COVID-19, Health care