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Rural Employment Scheme and Agricultural Wage Rate Nexus: An Analysis across States

Author

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  • Narayanamoorthy, A.
  • Bhattarai, Madhusudan

Abstract

This paper on Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has covered two objectives; one, whether the introduction of MGNREGS has increased the wage rates for agricultural labourers across the states and two, if so what are the factors that determine the growth rate of wages for farm labourers. The study is based on the secondary data on farm wages published by the Labour Bureau of India by gender and farm operation across the states and has covered the period 2000-01 to 2010-11. To present a comparative picture, the study period has been divided into two sub-periods, viz. pre- MGNREGS (2000-01 to 2005-06) and post-MGNREGS (2005-06 to 2010-11). The study has shown that the real wage rates have increased substantially during post-MGNREGS period as compared to pre- MGNREGS period for both male and female agricultural labourers in all the major farming operations. The rate of increase in wage rates has been found to be higher across the female agricultural labourers as compared to their male counterparts. The regression analysis has suggested that the average days of employment per household by MGNREGS, productivity of foodgrains, and road density have positively fuelled the growth rate of wages for both male and female farm labourers.

Suggested Citation

  • Narayanamoorthy, A. & Bhattarai, Madhusudan, 2013. "Rural Employment Scheme and Agricultural Wage Rate Nexus: An Analysis across States," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(Conferenc).
    • Handle: RePEc:ags:aerrae:158497
    DOI: 10.22004/ag.econ.158497
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    References listed on IDEAS

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    1. Diganta Mukherjee & Uday Bhanu Sinha, 2013. "Understanding NREGA: A Simple Theory and Some Facts," Springer Books, in: Natteri Siddharthan & Krishnan Narayanan (ed.), Human Capital and Development, edition 2, chapter 0, pages 103-128, Springer.
    2. Shenggen Fan & Peter Hazell & Sukhadeo Thorat, 2000. "Government Spending, Growth and Poverty in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(4), pages 1038-1051.
    3. Yoshifumi Usami, 2011. "A Note on Recent Trends in Wage Rates in Rural India," Journal, Review of Agrarian Studies, vol. 1(1), pages 149-182, January-J.
    4. Usami, Yoshifumi, 2011. "A Note on Recent Trends in Wage Rates in Rural India," Review of Agrarian Studies, Foundation for Agrarian Studies, vol. 1(1), July.
    5. Jha, Raghbendra & Bhattacharyya, Sambit & Gaiha, Raghav, 2011. "Social safety nets and nutrient deprivation: An analysis of the National Rural Employment Guarantee Program and the Public Distribution System in India," Journal of Asian Economics, Elsevier, vol. 22(2), pages 189-201, April.
    6. Narayanamoorthy, A. & Alli, P., 2012. "India’s New Food Security Worries: From Crop Holiday to Declining Foodgrains Area," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 67(3), pages 1-12.
    7. Jha, Raghbendra & Bhattacharyya, Sambit & Gaiha, Raghav & Shankar, Shylashri, 2009. ""Capture" of anti-poverty programs: An analysis of the National Rural Employment Guarantee Program in India," Journal of Asian Economics, Elsevier, vol. 20(4), pages 456-464, September.
    8. Harish, B.G. & Napraj, N. & Chendrakant, M.G. & Murthy, P.S. Srikantha & Chengappa, P.G. & Basavaraj, G., 2011. "Impacts and Implications of MGNREGA on Labour Supply and Income Generation for Agriculture in Central Dry Zone of Karnataka," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 24(Conferenc), November.
    9. Clément Imbert & John Papp, 2012. "Equilibrium Distributional Impacts of Government. Employment Programs: Evidence from India's Employment Guarantee," PSE Working Papers halshs-00680451, HAL.
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    Cited by:

    1. A. Narayanamoorthy & K. S. Sujitha, 2022. "Are the Farmer Households Becoming Agricultural Labour Households in India? An Analysis of State-Wise SAS Data," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 65(3), pages 643-665, September.
    2. Narayanamoorthy, A. & Bhattarai, M. & Suresh, R. & Alli, P., 2014. "Farm Mechanisation, MGNREGS and Labour Supply Nexus: A State-Wise Panel Data Analysis on Paddy and Wheat Crop," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 69(3), pages 1-16.
    3. Himanshu & Sujata Kundu, 2016. "Rural wages in India: Recent trends and determinants," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(2), pages 217-244, June.
    4. Himanshu, 2017. "Growth, structural change and wages in India: recent trends," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 60(3), pages 309-331, September.
    5. Wiggins, S., 2016. "IFAD RESEARCH SERIES 1 - Agricultural and rural development reconsidered: a guide to issues and debates," IFAD Research Series 280035, International Fund for Agricultural Development (IFAD).

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