Income loss and well-being during COVID-19 lockdown in Rural Bangladesh: Evidence from large household surveys

Abstract

We conducted a large household survey immediately after the lockdown was imposed in response to the COVID-19 outbreak in Bangladesh. We then followed up with a random subset of households to examine the changing circumstances of rural households as the pandemic evolves. We find that nearly 90 percent of these households experienced a negative income shock. Households that had lost their income completely were more worried about their finances and food, while households with no income loss were mostly concerned about the health of their family members. We also find evidence that households where day laborers are the main income earners mostly rely on loans and help from others to cope with the shock. The overall findings suggest that households experiencing severe negative income shocks were less concerned about the health of their family members, which could further exacerbate the COVID-19 situation as the economic crisis has been deepening over time.

Authors: Tabassum Rahman, Firoz Ahmed, Debayan Pakrashi, Abu Siddique and Asad Islam

Type: Journal Article

Year: February 2021

Key Results

  • Nearly 90 percent of households experienced a negative income shock due to the COVID-19 lockdown.
  • Households with no income loss were mostly concerned about the health of their family members, while households with complete income loss were more worried about finance and food.
  • Households with day laborers as the main income earners mostly rely on loans and help from others to cope with the shock