Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/236431 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14400
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
We propose a regional inequality-based mechanism to explain the heterogeneity in the spread of Covid-19 and test it using data from India. We argue that a core-periphery economic structure is likely to increase the spread of infection because it involves movement of goods and people across the core and peripheral districts. Using nightlights data to measure regional inequality in the degree of economic activity, we find evidence in support of our hypothesis. Further, we find that regions with higher nightlight inequality also experience higher spread of Covid-19 only when lockdown measures have been relaxed and movement of goods and services are near normal. Our findings imply that policy responses to contain Covid-19 contagion needs to be heterogeneous across India, depending on the ex-ante economic structure of a region.
Subjects: 
COVID-19
contagion
core-periphery
nightlight
industrial-heterogeneity
JEL: 
I15
I18
R1
Document Type: 
Working Paper

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