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

Abstract

The paper estimates the economic cost to family when a household member loses job due to onset of disability. The cost is measured in terms of loss in the ‘conversion handicap’ adjusted per capita household consumption and is estimated using the Indian National Sample Survey (NSS) data. Estimates of the loss are given by state, by rural-urban place of residence, and by the type of disability. 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.