The Impact of Adult Death on Household Consumption, Expenditure, and Income in India: Evidence from a Nationally Representative Longitudinal Survey

Abstract

Using nationally representative panel data from the India Human Development Survey (IHDS) for the period 2004–2005 to 2011–2012, we quantified the impact of adult death on household consumption patterns (food and non-food expenditures) and household economic status (income and wealth score) in India. The IHDS panel data provides an opportunity to compare economic outcomes among households that did and did not experience adult deaths. We used logit regression to examine the association between adult death events and households’ socioeconomic characteristics. We carried out ordinary least square (OLS) regression to investigate the impact of adult death on a household’s income and consumption pattern. We used propensity score matching (PSM) control for endogeneity of mortality to the outcomes of interest. We found that there is a higher adult death concentration among economically poor households. The PSM finding suggests that adult death has an adverse impact on the household income and consumption pattern. Eight percent of the households represented reported the loss of productive adults. Adult death can impoverish households, as reflected in their consumption pattern and income. Findings of this chapter contribute a better understanding of demographic factors determining the economic condition of households in the low- and middle-income countries. To achieve the Sustainable Development Goals, which aim to end poverty and hunger by 2030, steps are urgently needed to reduce the impact of PADs on Indian households.