Economics and Econometrics, Economics, Econometrics and Finance
2
Scopus Publications
Scopus Publications
Unequal start, inclusive gains? Financial inclusion and household wealth in India T.M Sivadasan, Ashok Thomas Applied Economics, 2026 Financial inclusion is widely promoted as a pathway to household economic well-being, but evidence on its distributional impact across social groups in developing economies remains limited. Using nationally representative survey data of Indian households, this study provides new causal evidence on how financial inclusion affects household financial wealth, net wealth, and subjective financial well-being, with particular attention to caste-based heterogeneity. Our result shows that greater engagement with formal financial services significantly improves all three wealth outcomes. However, the gains are not linear. The Generalized Propensity Score dose-response analysis reveals that financial inclusion is most transformative when households transition from exclusion to basic participation in the formal financial system. Beyond a certain level of exposure, the marginal gain diminishes, especially among historically disadvantaged caste groups. These findings suggest that financial inclusion is not a one-size-fits-all solution. It uplifts households when basic financial needs remain unmet, but deeper engagement, particularly with multiple credit instruments or complex products, can become overwhelming when not supported by financial capability and stable economic opportunities. Therefore, our findings underscore the need for policies that deliver targeted financial education, simplify financial products, strengthen rural banking outreach, and monitor credit quality to ensure access translates into sustained wealth accumulation.
Understanding the multifaceted impact of COVID-19 on migrants in Kerala, India Irudaya S. Rajan, Pooja Batra, Reddy Sai Shiva Jayanth, Tharatha Moolayil Sivadasan Development Policy Review, 2023 SummaryMotivationCOVID‐19 has disrupted the lives of millions of people worldwide. Migrants in developing economies have been among the most affected. This vulnerable population faces a threat to their livelihood and way of life. Hence, there is an urgent need to understand the impact of the pandemic on their lives to be able to tackle subsequent waves of the pandemic or similar future exogenous shocks.PurposeWe delve into the economic and social disruptions caused by the COVID‐19 pandemic on the employment, sources of income, and lives of different categories of migrant labourers in the Indian state of Kerala.Methods and approachUsing the livelihood portfolio theory, we dissect this impact in relation to a wide range of issues. This was corroborated by in‐depth semi‐structured interviews with three categories of respondents. The interview data was analysed by using the directed qualitative content analysis method. We created themes from the data and juxtaposed them with the livelihood portfolio theory in addressing the research objectives.FindingsResults highlight the impact on livelihood, lifestyles, migration prospects, and gender aspects. First, households dependent on international migrants were more severely affected than those with family members who were internal migrants. Second, a considerable lifestyle change (more reliance on a plant‐based diet) and borrowing patterns (more reliance on informal money lending) was reported. Third, opinions on future migration prospects were pessimistic, and a trend towards reverse migration was noted. We also captured resilience measures for each of the themes.Policy implicationsWe find that blanket responses to mitigate migrants' hardships could be counterproductive. Policy‐makers ought to implement tailor‐made policies keeping in mind the migrants' classification and socioeconomic demographics. Further, we recommend specific measures to address challenges that women face, to ease their workload and mitigate the loss of income. Specific measures aimed at initiating attitudinal change such as creating mental health awareness, curbing misinformation, and providing counselling services could also add immense value in tackling the pandemic.
