This paper provides a multi-dimensional analysis of the impacts of the Indian Mahatma Gandhi National Rural Employment Guarantee Scheme using a case study from rural Tamil Nadu. Drawing on structured interviews in households and semi-structured interviews with local employers and officials, we analyse the effects of the workfare scheme when it is widely and properly implemented. We distinguish between different conceptualizations of the work scheme as a means of welfare provision, labour market policy and intervention directed towards other objectives. We found that the goals of the scheme were fulfilled unevenly in the given context. Among other findings, we show that positive effects on the welfare of participating and non-participating households were accompanied by adverse effects on the local economy and negligible impact on out-migration for work.
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