The Economic Burden of Disability in India: Estimates from the NSS Data

32 Pages Posted: 5 May 2014

See all articles by Lakshmi K. Raut

Lakshmi K. Raut

U.S. Social Security Administration

Manoranjan Pal

Indian Statistical Institute - Economic Research Unit

Premananda Bharati

Indian Statistical Institute, Kolkata

Date Written: February 24, 2014

Abstract

The paper estimates the economic cost to family when a household member loses job due to onset of disability. The cost measured in terms of loss in the ‘conversion handicap’ adjusted per capita household consumption and estimated using the Indian National Sample Survey (NSS) data. Estimates of the loss by state, by rural-urban place of residence, and by the type of disability are given. The paper recommends a publicly provided actuarially fair social disability insurance program that taxes workers while working and provides disability benefits close to their pre-disability earnings to improve social welfare by preventing large consumption losses.

Keywords: economic burden of disability, disability in India, cost of disability in India

JEL Classification: I12

Suggested Citation

Raut, Lakshmi K. and Pal, Manoranjan and Bharati, Premananda, The Economic Burden of Disability in India: Estimates from the NSS Data (February 24, 2014). Available at SSRN: https://ssrn.com/abstract=2432546 or http://dx.doi.org/10.2139/ssrn.2432546

Lakshmi K. Raut (Contact Author)

U.S. Social Security Administration ( email )

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Manoranjan Pal

Indian Statistical Institute - Economic Research Unit ( email )

203 B.T. Road
Kolkata, West Bengal 700108
India

Premananda Bharati

Indian Statistical Institute, Kolkata ( email )

203 B.T. Road
Kolkata, West Bengal 700108
India

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