Household response to an extreme shock: Evidence on the immediate impact of the Covid-19 lockdown on economic outcomes and well-being in rural Uganda

•Compared to immediately before the lockdown, household income falls by 60%, with enterprise and wage income heavily hit.•Households respond by purchasing 50% less food per capita.•Households draw down their savings and increase borrowing, but have not yet sold fixed assets.•Households increase thei...

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Vydáno v:	World development Ročník 140; s. 105318
Hlavní autoři:	Mahmud, Mahreen, Riley, Emma
Médium:	Journal Article
Jazyk:	angličtina
Vydáno:	England Elsevier Ltd 01.04.2021 Elsevier Science Publishers Pergamon Press Inc Published by Elsevier Ltd
Témata:	Abused women Aggression Agricultural households Coronaviruses COVID-19 Developing countries Economic wellbeing Economics Family violence Farm income Food Gender-based violence Households Impact analysis Income Intimate partner violence Labor supply LDCs Life satisfaction Livestock Policy making Population policy Poverty Profits Psychological aspects Quality of life Regular Rural areas Rural population Rural populations Satisfaction Shelter in place Villages Violence against women Welfare Well being Uganda Developing countries Well being Poverty Agricultural households Covid-19 Welfare
ISSN:	0305-750X, 1873-5991, 0305-750X
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Abstract	•Compared to immediately before the lockdown, household income falls by 60%, with enterprise and wage income heavily hit.•Households respond by purchasing 50% less food per capita.•Households draw down their savings and increase borrowing, but have not yet sold fixed assets.•Households increase their labour supply to the farm and livestock, more than the decline to enterprises and wage labour.•Well-being declines: 50% increase in the likelihood of missing a meal and 25% decline in reported life satisfaction. We provide evidence on the economic and well-being impact of the Covid-19 lockdown on a sample of households in rural Uganda. Our sample consists of 1,277 households randomly drawn from 114 rural villages in western Uganda and surveyed in-person in early March 2020, just before the lockdown. We followed up with this sample in May 2020, reaching over 85% of them by phone. We find a large decline of 60% in household non-farm income due to household enterprise profits and labour income being almost wiped-out post the lockdown. Households respond to this loss of income in three key ways. One, there is a 40% decrease in food expenditure per adult equivalent. Two, they use up nearly 50% of their savings and borrow more, but have not yet liquidated their fixed assets or sold livestock. Three, they increase total household labour supply to household farm and livestock, more than making up for the decline in supply to enterprises and labour outside the household. We find a decrease in well-being as a result of this: there is an increase in the likelihood of missing a meal, a decline in reported satisfaction with quality of life, a higher likelihood of having a major argument with their spouse and an increase in perceived frequency of intimate partner violence against women in the village. The negative effects of the lockdown are greater for households that were wealthier at baseline, since these households were more reliant on enterprise and salaried income. These results were one of the first to show a large negative impact of the lockdown for a rural population. Our findings are important to policy makers in Uganda and other developing countries as they suggest income and consumption support is needed for rural households.
AbstractList	We provide evidence on the economic and well-being impact of the Covid-19 lockdown on a sample of households in rural Uganda. Our sample consists of 1,277 households randomly drawn from 114 rural villages in western Uganda and surveyed in-person in early March 2020, just before the lockdown. We followed up with this sample in May 2020, reaching over 85% of them by phone. We find a large decline of 60% in household non-farm income due to household enterprise profits and labour income being almost wiped-out post the lockdown. Households respond to this loss of income in three key ways. One, there is a 40% decrease in food expenditure per adult equivalent. Two, they use up nearly 50% of their savings and borrow more, but have not yet liquidated their fixed assets or sold livestock. Three, they increase total household labour supply to household farm and livestock, more than making up for the decline in supply to enterprises and labour outside the household. We find a decrease in well-being as a result of this: there is an increase in the likelihood of missing a meal, a decline in reported satisfaction with quality of life, a higher likelihood of having a major argument with their spouse and an increase in perceived frequency of intimate partner violence against women in the village. The negative effects of the lockdown are greater for households that were wealthier at baseline, since these households were more reliant on enterprise and salaried income. These results were one of the first to show a large negative impact of the lockdown for a rural population. Our findings are important to policy makers in Uganda and other developing countries as they suggest income and consumption support is needed for rural households. We provide evidence on the economic and well-being impact of the Covid-19 lockdown on a sample of households in rural Uganda. Our sample consists of 1,277 households randomly drawn from 114 rural villages in western Uganda and surveyed in-person in early March 2020, just before the lockdown. We followed up with this sample in May 2020, reaching over 85% of them by phone. We find a large decline of 60% in household non-farm income due to household enterprise profits and labour income being almost wiped-out post the lockdown. Households respond to this loss of income in three key ways. One, there is a 40% decrease in food expenditure per adult equivalent. Two, they use up nearly 50% of their savings and borrow more, but have not yet liquidated their fixed assets or sold livestock. Three, they increase total household labour supply to household farm and livestock, more than making up for the decline in supply to enterprises and labour outside the household. We find a decrease in well-being as a result of this: there is an increase in the likelihood of missing a meal, a decline in reported satisfaction with quality of life, a higher likelihood of having a major argument with their spouse and an increase in perceived frequency of intimate partner violence against women in the village. The negative effects of the lockdown are greater for households that were wealthier at baseline, since these households were more reliant on enterprise and salaried income. These results were one of the first to show a large negative impact of the lockdown for a rural population. Our findings are important to policy makers in Uganda and other developing countries as they suggest income and consumption support is needed for rural households.We provide evidence on the economic and well-being impact of the Covid-19 lockdown on a sample of households in rural Uganda. Our sample consists of 1,277 households randomly drawn from 114 rural villages in western Uganda and surveyed in-person in early March 2020, just before the lockdown. We followed up with this sample in May 2020, reaching over 85% of them by phone. We find a large decline of 60% in household non-farm income due to household enterprise profits and labour income being almost wiped-out post the lockdown. Households respond to this loss of income in three key ways. One, there is a 40% decrease in food expenditure per adult equivalent. Two, they use up nearly 50% of their savings and borrow more, but have not yet liquidated their fixed assets or sold livestock. Three, they increase total household labour supply to household farm and livestock, more than making up for the decline in supply to enterprises and labour outside the household. We find a decrease in well-being as a result of this: there is an increase in the likelihood of missing a meal, a decline in reported satisfaction with quality of life, a higher likelihood of having a major argument with their spouse and an increase in perceived frequency of intimate partner violence against women in the village. The negative effects of the lockdown are greater for households that were wealthier at baseline, since these households were more reliant on enterprise and salaried income. These results were one of the first to show a large negative impact of the lockdown for a rural population. Our findings are important to policy makers in Uganda and other developing countries as they suggest income and consumption support is needed for rural households. •Compared to immediately before the lockdown, household income falls by 60%, with enterprise and wage income heavily hit.•Households respond by purchasing 50% less food per capita.•Households draw down their savings and increase borrowing, but have not yet sold fixed assets.•Households increase their labour supply to the farm and livestock, more than the decline to enterprises and wage labour.•Well-being declines: 50% increase in the likelihood of missing a meal and 25% decline in reported life satisfaction. We provide evidence on the economic and well-being impact of the Covid-19 lockdown on a sample of households in rural Uganda. Our sample consists of 1,277 households randomly drawn from 114 rural villages in western Uganda and surveyed in-person in early March 2020, just before the lockdown. We followed up with this sample in May 2020, reaching over 85% of them by phone. We find a large decline of 60% in household non-farm income due to household enterprise profits and labour income being almost wiped-out post the lockdown. Households respond to this loss of income in three key ways. One, there is a 40% decrease in food expenditure per adult equivalent. Two, they use up nearly 50% of their savings and borrow more, but have not yet liquidated their fixed assets or sold livestock. Three, they increase total household labour supply to household farm and livestock, more than making up for the decline in supply to enterprises and labour outside the household. We find a decrease in well-being as a result of this: there is an increase in the likelihood of missing a meal, a decline in reported satisfaction with quality of life, a higher likelihood of having a major argument with their spouse and an increase in perceived frequency of intimate partner violence against women in the village. The negative effects of the lockdown are greater for households that were wealthier at baseline, since these households were more reliant on enterprise and salaried income. These results were one of the first to show a large negative impact of the lockdown for a rural population. Our findings are important to policy makers in Uganda and other developing countries as they suggest income and consumption support is needed for rural households.
ArticleNumber	105318
Audience	Trade Academic
Author	Riley, Emma Mahmud, Mahreen
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BackLink	https://www.ncbi.nlm.nih.gov/pubmed/34548741$$D View this record in MEDLINE/PubMed
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Copyright	2020 Crown Copyright © 2020 Published by Elsevier Ltd. All rights reserved. COPYRIGHT 2021 Elsevier Science Publishers Copyright Pergamon Press Inc. Apr 2021 Crown Copyright © 2020 Published by Elsevier Ltd. All rights reserved. 2020
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PublicationTitle	World development
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PublicationYear	2021
Publisher	Elsevier Ltd Elsevier Science Publishers Pergamon Press Inc Published by Elsevier Ltd
Publisher_xml	– name: Elsevier Ltd – name: Elsevier Science Publishers – name: Pergamon Press Inc – name: Published by Elsevier Ltd
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Snippet	•Compared to immediately before the lockdown, household income falls by 60%, with enterprise and wage income heavily hit.•Households respond by purchasing 50%... We provide evidence on the economic and well-being impact of the Covid-19 lockdown on a sample of households in rural Uganda. Our sample consists of 1,277...
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SubjectTerms	Abused women Aggression Agricultural households Coronaviruses COVID-19 Developing countries Economic wellbeing Economics Family violence Farm income Food Gender-based violence Households Impact analysis Income Intimate partner violence Labor supply LDCs Life satisfaction Livestock Policy making Population policy Poverty Profits Psychological aspects Quality of life Regular Rural areas Rural population Rural populations Satisfaction Shelter in place Villages Violence against women Welfare Well being
Title	Household response to an extreme shock: Evidence on the immediate impact of the Covid-19 lockdown on economic outcomes and well-being in rural Uganda
URI	https://dx.doi.org/10.1016/j.worlddev.2020.105318 https://www.ncbi.nlm.nih.gov/pubmed/34548741 https://www.proquest.com/docview/2523168389 https://www.proquest.com/docview/2575373681 https://pubmed.ncbi.nlm.nih.gov/PMC8446716
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