Alcohol Access and Household Welfare: Evidence from India’s Highway Liquor Ban

• In Event: Policy Perspectives on Relationship Stability and Divorce

Abstract

Alcohol consumption is strongly linked to domestic violence, household instability, and adverse outcomes for women and children. This paper examines how restricting alcohol access affects household behavior and family well-being using a nationwide policy shock in India. In 2017, the Supreme Court of India mandated the closure of alcohol outlets within 500 meters of national and state highways. Because highway networks vary substantially across districts, the policy generated plausibly exogenous variation in alcohol availability depending on local highway exposure.

To study the effects of this policy, I combine household panel data on consumption and income with nationally representative health survey data capturing gender attitudes, labor force participation, and measures of intimate partner violence. Using household panel data, I estimate difference-in-differences models comparing households who were less vs more exposed to the ban. The ban significantly reduced household alcohol purchases and the share of total spending devoted to alcohol. I also find reductions in spending on tobacco and junk foods, suggesting broader changes in household consumption patterns following the decline in alcohol availability.

Despite these reductions in alcohol-related spending, the policy is associated with increases in women’s labor force participation and reported intimate partner violence. To better understand these dynamics, I examine mechanisms using a nationally representative health survey, including attitudes toward domestic violence and household decision-making. The results are consistent with shifts in intra-household bargaining and economic behavior following changes in alcohol access. While reduced alcohol consumption may lower some forms of household expenditure, the findings highlight complex gendered responses within households.

Overall, my paper shows that alcohol access policies can have broader spillover effects on household behavior, gender dynamics, and family welfare. These results contribute to policy debates on alcohol regulation and provide new evidence on how policies targeting substance use can shape outcomes for women and children in developing country contexts.

Author

• Prachi Shukla, Duke University
  Presenting Author