Research

Doing More Harm Than Good? Labor Market Consequences to Paid Maternity Leave Extension of India ( Job Market Paper)

Gupta, Shatakshi

Working Paper : Link

Can generous and seemingly 'progressive' paid maternity leaves lead to decrease in female employment? In this paper, I examine the effects from the extension of paid maternity leaves on the gendered labor market outcomes, in the context of India. The empirical analysis utilizes a two-fold estimation, first using firm-level data to measure difference in policy effects across genders. Second estimation measures reallocation of female-employment between industries, by varying degrees of policy-exposure, using a fuzzy difference-in-difference design. The results indicate that policy causes firms to substitute women out by their male-counterparts and they get reallocated to less-formal industries, effectively changing the gender composition of formal-employment. The analysis suggests that the policy worsened labor outcomes for women by deriving women into unpaid house-hold chores/informal jobs and unemployment, thereby fueling gender labor differences.

Shock-Driven Household Adjustments: Assessing the Impact of Economic Hardships on Nigerian Household

Shatakshi Gupta; Ivette Contreras; Gbemisola Oseni;Akiko Sagesaka & Maryam Salihu

Working Paper : Available upon request

This paper examines how Nigerian households adjust their living arrangements in response to economic shocks, particularly rising prices between 2019 and 2024. Using panel data from the Nigeria General Household Survey – Panel (GHS-Panel) and a shift-share instrument to address endogeneity, we provide causal evidence that households facing financial hardship expand in size, primarily through cohabitation with extended family members. The increase in household size is driven by adults rather than changes in fertility or mortality, and it is most pronounced among poorer households and in northern regions where informal safety nets are stronger. We find no significant evidence of household downsizing or fragmentation, indicating that consolidation is the dominant coping strategy. These findings highlight the importance of informal social protection in contexts with limited formal safety nets and underscore the need for targeted policies to support vulnerable households during periods of economic instability. Our results contribute to the literature on household welfare and adaptive strategies in developing economies, offering insights for the design of social protection programs and future research on the long-term effects of household compositional changes.

Sobering Statistics: Economic consequences of Alcohol Ban Policy in Bihar

Shatakshi Gupta

Working Paper : Available upon request

The paper studies economic impacts from a state-wide ban on Alcohol implemented in the one of the poorest states in India, Bihar, in 2016. The complete liquor prohibition was predicted to bring reduction in drunken crimes, and better nutrition for families with unspent money on alcohol. But the economic damages that the policy could bring along with a sudden closure of a major industry were not at all anticipated. I utilize a difference in difference approach to provide the causal evidence for the negative economic impact brought upon the household in Bihar, using a rich household panel survey data. I find that the prohibition resulted in decline in business incomes for all households and subsample, and wage income significantly declined for those who were male-majority households previously consuming alcohol, while increased for non-drinker and female majority households, which did not have any expenditure on alcohol previously. The declining incomes was accompanied by reductions in expenditures on food. The paper sheds light on unintended economic consequences followed by major political interventions and how governments should better prepare for unforeseen economic ramifications of such policies.