1. Banks and Inequality: Evidence from a Nationwide Branch Authorization Policy (Revise and Resubmit) (with William Crowder, Mahmut Yasar and Ashish Sedai)

Abstract: We analyze the causal impact of a nationwide bank expansion policy on economic inequality in India using a regression discontinuity design (RDD). The findings reveal significant reductions in both consumption and wealth inequality, driven by economic growth and structural transformation. We document strong beta-convergence in consumption and income, with middle-income households experiencing the largest relative gains, underscoring the role of financial access in accelerating upward mobility. Our results demonstrate that bank expansion fosters economic diversification, supporting non-agricultural development and narrowing regional disparities. This paper contributes to the literature by providing evidence on how large-scale financial inclusion policies reshape regional inequality dynamics and drive inclusive growth in developing economies.

2. Does Financial Inclusion Mitigate Social Exclusion? (Link) (Revise and Resubmit) (with Debayan Pakrashi, Sarani Saha and Ashish Sedai.)

Abstract: This paper examines the impact of financial inclusion in reducing social exclusion. Utilizing a quasi-experimental setup involving a 2005 Reserve Bank of India policy incentivizing bank branch openings in underbanked districts, we employ regression discontinuity design analysis with data from three nationwide surveys and censuses. Our findings reveal significant consumption increases and poverty reduction among marginalized castes compared to non-marginalized castes, narrowing caste-based welfare inequality. We also observe enhanced social inclusion for marginalized castes. Three channels—informal finance, business finance, and the labor market—are found to contribute to the welfare gains of marginalized castes. Our results withstand various RD design checks. In conclusion, this study underscores the role of inclusive formal banking sector in mitigating deep-rooted social norms like caste-based discrimination within society.

Awards: Best Paper Award at 2nd Global Conference on Caste, Business and Society at University of Bath (June 18-20, 2024)

Media Coverage: World Bank Development Impact Blog (December, 2024), IHDS Newsletter (July, 2023)

3.  Digital Finance and Gendered Labor Reallocation (Link) (with Sandhya Garg and Ashish Sedai)

Abstract: This study examines how digital financial services (DFS) drive labor reallocation in India, leveraging nationally representative data and a two-stage least squares approach.
For men, DFS facilitates a shift from agricultural self-employment to formal wage employment. For women, it reduces unpaid labor, promoting entry into formal work and increasing financial autonomy through expanded access to banking, mobile money, and the internet. Both genders experience increased time spent in paid work and earnings. Our findings demonstrate the critical role of DFS in transforming labor markets and advancing gender equity.

4. Signing for Safety: Can Mandatory Marriage Registration Reduce Domestic Violence? (Link)(with Debayan Pakrashi, Sarani Saha and Ashish Sedai.)

Abstract: This paper examines the impact of a mandatory marriage registration policy on domestic violence in India using a difference-indifference model. Our analysis also explores how mandatory registration can mitigate polygamy and child marriage. Event study analysis shows that the tangible impacts of the policy only emerge after the implementation of anticorruption measures in public service delivery. However, the heterogeneity analysis reveals that the policy primarily benefits non-poor and non-marginalized groups, leaving vulnerable populations underserved. Thus, mandatory marriage registration is crucial in combating domestic violence but must be integrated into broader initiatives to reduce corruption and enhance inclusivity.