Rural household vulnerability and COVID-19: Evidence from India

Abstract

The coronavirus disease 2019 (COVID-19) pandemic has affected vulnerable households’ livelihoods in developing countries. Using high-frequency phone survey data from the World Bank, we assess rural Indian households’ vulnerability and poverty status during the pandemic. Results reveal that over three-fifths of Indian rural households are vulnerable to poverty in the context of COVID-19, despite India’s evident progress in mitigating poverty in the pre-pandemic era. Poverty plays a major role in accounting for variations in household vulnerability; however, the impact of risks on household welfare is not negligible. On average, households with more members, older household heads, and more outmigrants are more vulnerable to poverty during the pandemic. The impacts of the gender of the household head, access to masks, consumption loans, and COVID-related information are nevertheless insignificant. Results stress the urgent necessity of deploying concerted interventions to strengthen household vulnerability in rural India.