#10240. Unemployment and Household Spending in Rural and Urban India: Evidence from Panel Data

September 2026publication date
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Journal’s subject area:
Development;
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Abstract:
India has seen high levels of unemployment in recent years. Understanding how an episode of job loss affects household consumption expenditure is important for designing effective safety net programs. We apply difference-in-difference and quantile regressions to a high-frequency panel data from a nationally representative survey of 1,75,000 households in 20XX to estimate the impact of a job loss on household consumption expenditure–for urban and rural households, and households across different expenditure levels.
Keywords:
consumer spending; consumption smoothing; Employment shock; permanent income hypothesis

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