Welfare and Poverty Impacts of India's National Rural Employment Guarantee Scheme: Evidence from Andhra Pradesh

Deininger, Klaus; Liu, Yanyan

doi:10.2139/ssrn.2343178

Cited by 28 publications

(33 citation statements)

References 29 publications

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“…Well-targeted, well-implemented NREGA projects may have had a positive impact on agricultural productivity in the medium run. Deininger and Liu (2013) nd that in Andhra Pradesh low caste households' income increased three years after irrigation works were made on their land. The evidence, however, reviewed by The World Bank (2011) suggest that NREGA infrastructures did not substantially improve productivity in the initial years of program implementation.…”

Section: Poverty Reduction Through Employment Generationmentioning

confidence: 99%

Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee

Imbert

Papp²

2015

American Economic Journal: Applied Economics

215

251

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We estimate the effect of a large rural workfare program in India on private employment and wages by comparing trends in districts that received the program earlier relative to those that received it later. Our results suggest that public sector hiring crowded out private sector work and increased private sector wages. We compute the implied welfare gains of the program by consumption quintile. Our calculations show that the welfare gains to the poor from the equilibrium increase in private sector wages are large in absolute terms and large relative to the gains received solely by program participants. (JEL I38, J31, J45, J68, O15)

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Section: Poverty Reduction Through Employment Generationmentioning

confidence: 99%

Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee

Imbert

Papp²

2015

American Economic Journal: Applied Economics

215

251

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“…In rural areas of India, casual agricultural 1 I outline here only the three mechanisms that seem to matter in the context of this study, namely in Andhra Pradesh and within the first two years of program implementation. Other mechanisms though which the NREGS could affect crop choice could be irrigation infrastructure created within the program (Deininger and Liu, 2013), education (Shah and Steinberg, 2015) and reduced conflict (Fetzer, 2014).…”

Section: Risk Management and Households' Crop Choices: A Theoretical mentioning

confidence: 99%

An Employment Guarantee as Risk Insurance? Assessing the Effects of the NREGS on Agricultural Production Decisions

Gehrke

2019

The World Bank Economic Review

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Uninsured risk constrains households in their production decisions in many developing countries. Similarly to crop insurance, employment guarantees can support farmers in managing agricultural production risks. Evidence from representative panel data of Andhra Pradesh, India, suggests that the National Rural Employment Guarantee Scheme (NREGS) reduces households’ uncertainty about future income streams because it provides employment opportunities in rural areas independently of weather shocks and crop failure. Therewith the NREGS makes an ex-post labor supply response to agricultural shocks more efficient. Households with access to the NREGS are found to shift their production toward riskier but also more profitable crops. The observed shifts in agricultural production do considerably raise the profitability of agricultural production and hence the incomes of smallholder farmers. The findings are not driven by changes in the labor or cost intensity of those crops, which supports the idea that the causal mechanism underlying the observed changes is indeed an insurance effect.

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“…Fourth, there is evidence of uptake of the programme by a number of targeted groups, particularly ST and SC (Deininger and Liu, 2013;Dreze and Khera, 2010) and women (Dev, 2011;Dreze, 2010;Dreze and Khera, 2009). When breaking down participation according to group for the whole of India, Stahlberg (2012) found that the average number of days of participation in MGNREGA in 2009-10 was 48 for women, 21 for ST and 31 for SC.…”

Section: Background Literaturementioning

confidence: 99%

The Mahatma Gandhi National Rural Employment Guarantee Scheme: A Policy Solution to Rural Poverty in India?

Breitkreuz

Stanton

Brady

et al. 2017

Development Policy Review

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The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was developed by the Indian government to reduce rural poverty through 100 days of guaranteed employment per year. Using focus group methods, we explore whether this scheme has provided rights' based social protection through guaranteed employment for Scheduled Castes, Scheduled Tribes and women in Kerala, Tamil Nadu and Odisha. We found that the experiences of participating in MGNREGA varied depending on how MGNREGA wages compared to market wages in the region, as well as local implementation of the program. Although MGNREGA offered some basic employment for marginalized groups, it did not provide substantial help to the most vulnerable. However, there was some evidence of small but significant shifts in labour relations. Higher wages, more opportunities for work, better implementation and a greater recognition of the caregiving responsibilities of women will be required for this policy to fully meet its goals.

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Welfare and Poverty Impacts of India's National Rural Employment Guarantee Scheme: Evidence from Andhra Pradesh

Cited by 28 publications

References 29 publications

Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee

Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee

An Employment Guarantee as Risk Insurance? Assessing the Effects of the NREGS on Agricultural Production Decisions

The Mahatma Gandhi National Rural Employment Guarantee Scheme: A Policy Solution to Rural Poverty in India?

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