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Adapting to an aggregate shock: The impact of the Covid-19 crisis on rural households

We examine the response of rural Ugandan households to a large aggregate shock, the Covid-19 pandemic, during and one year after the first lockdown in March 2020. Using 6 rounds of phone surveys from 558 households in western Uganda, we find that household income recovery from the lockdown differs b...

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Detalles Bibliográficos
Autores principales: Mahmud, Mahreen, Riley, Emma
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer US 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9453704/
https://www.ncbi.nlm.nih.gov/pubmed/36097544
http://dx.doi.org/10.1007/s11150-022-09625-7
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author Mahmud, Mahreen
Riley, Emma
author_facet Mahmud, Mahreen
Riley, Emma
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description We examine the response of rural Ugandan households to a large aggregate shock, the Covid-19 pandemic, during and one year after the first lockdown in March 2020. Using 6 rounds of phone surveys from 558 households in western Uganda, we find that household income recovery from the lockdown differs by whether households had a business pre-pandemic. After an initial sharp fall, the incomes of those without a business have recovered to pre-pandemic levels. However, the relatively better-off households with a business before the pandemic still have one-third lower income, due to sustained closure of businesses even after the end of the first lockdown restrictions. Additionally, business-owning households have 30% lower wealth one-year into the pandemic, driven by 44% lower assets, 45% drop in savings, and a 15 fold increase in net-borrowing, suggesting long-term damage. Our findings point to the need to support households who face dwindling finances to fall back on.
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spelling pubmed-94537042022-09-08 Adapting to an aggregate shock: The impact of the Covid-19 crisis on rural households Mahmud, Mahreen Riley, Emma Rev Econ Househ Article We examine the response of rural Ugandan households to a large aggregate shock, the Covid-19 pandemic, during and one year after the first lockdown in March 2020. Using 6 rounds of phone surveys from 558 households in western Uganda, we find that household income recovery from the lockdown differs by whether households had a business pre-pandemic. After an initial sharp fall, the incomes of those without a business have recovered to pre-pandemic levels. However, the relatively better-off households with a business before the pandemic still have one-third lower income, due to sustained closure of businesses even after the end of the first lockdown restrictions. Additionally, business-owning households have 30% lower wealth one-year into the pandemic, driven by 44% lower assets, 45% drop in savings, and a 15 fold increase in net-borrowing, suggesting long-term damage. Our findings point to the need to support households who face dwindling finances to fall back on. Springer US 2022-09-08 2023 /pmc/articles/PMC9453704/ /pubmed/36097544 http://dx.doi.org/10.1007/s11150-022-09625-7 Text en © The Author(s), under exclusive licence to Springer Science+Business Media, LLC, part of Springer Nature 2022, Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Article
Mahmud, Mahreen
Riley, Emma
Adapting to an aggregate shock: The impact of the Covid-19 crisis on rural households
title Adapting to an aggregate shock: The impact of the Covid-19 crisis on rural households
title_full Adapting to an aggregate shock: The impact of the Covid-19 crisis on rural households
title_fullStr Adapting to an aggregate shock: The impact of the Covid-19 crisis on rural households
title_full_unstemmed Adapting to an aggregate shock: The impact of the Covid-19 crisis on rural households
title_short Adapting to an aggregate shock: The impact of the Covid-19 crisis on rural households
title_sort adapting to an aggregate shock: the impact of the covid-19 crisis on rural households
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9453704/
https://www.ncbi.nlm.nih.gov/pubmed/36097544
http://dx.doi.org/10.1007/s11150-022-09625-7
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