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"Capture" of anti-poverty programs: An analysis of the National Rural Employment Guarantee Program in India

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  • Jha, Raghbendra
  • Bhattacharyya, Sambit
  • Gaiha, Raghav
  • Shankar, Shylashri

Abstract

Using pooled household level data for the Indian states of Rajasthan and Andhra Pradesh we find that the size of landholdings is a negative predictor of participation in the National Rural Employment Guarantee Program (NREGP). In state level analysis this pattern survives in Rajasthan but reverses in Andhra Pradesh where we notice a positive relationship. This paper examines whether this sign reversal in Andhra Pradesh is indicative of program capture in Andhra Pradesh and better targeting in Rajasthan. We compare land inequality, ratio of NREG and slack season agricultural wage rates, political interference, and geographical remoteness across the two states and conclude that program capture may be an issue in Andhra Pradesh, largely because of these reasons. We also find evidence of complementarity between NREGP and the Public Distribution System (PDS), implying that the real income transfer through food subsidy needs supplementation.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Asian Economics.

Volume (Year): 20 (2009)
Issue (Month): 4 (September)
Pages: 456-464

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Handle: RePEc:eee:asieco:v:20:y:2009:i:4:p:456-464

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Keywords: Capture Poverty India;

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References

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  13. Alderman, Harold, 2002. "Do local officials know something we don't? Decentralization of targeted transfers in Albania," Journal of Public Economics, Elsevier, vol. 83(3), pages 375-404, March.
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Citations

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Cited by:
  1. Dutta, Puja & Murgai, Rinku & Ravallion., Martin & van de Walle, Dominique, 2012. "Does India's employment guarantee scheme guarantee employment ?," Policy Research Working Paper Series 6003, The World Bank.
  2. Deininger, Klaus & Liu, Yanyan, 2013. "Welfare and poverty impacts of India's national rural employment guarantee scheme : evidence from Andhra Pradesh," Policy Research Working Paper Series 6543, The World Bank.
  3. Basu, Arnab K., 2011. "Impact of Rural Employment Guarantee Schemes on Seasonal Labor Markets: Optimum Compensation and Workers' Welfare," IZA Discussion Papers 5701, Institute for the Study of Labor (IZA).
  4. 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(2013).
  5. Raghbendra Jha & Simrit Kaur & Raghav Gaiha & Manoj K. Pandey, 2012. "NREGS and TPDS in Rajasthan and Madhya Pradesh: Complements or Substitutes?," ASARC Working Papers 2012-01, The Australian National University, Australia South Asia Research Centre.
  6. Raghbendra Jha, 2010. "Food security and small landholders in south Asia," ASARC Working Papers 2010-21, The Australian National University, Australia South Asia Research Centre.
  7. Lagrange, Arthur Alik & Ravallion, Martin, 2012. "Evaluating workfare when the work is unpleasant : evidence for India's national rural employment guarantee scheme," Policy Research Working Paper Series 6272, The World Bank.
  8. Raghbendra Jha & Raghav Gaiha, 2012. "India's National Rural Employment Guarantee Scheme as it is - Interpreting the Official Report," ASARC Working Papers 2012-12, The Australian National University, Australia South Asia Research Centre.
  9. Abhiroop Mukhopadhyay, 2012. "The political economy of implementing the National Rural Employment Guarantee Scheme in India," Brooks World Poverty Institute Working Paper Series esid-015-12, BWPI, The University of Manchester.
  10. Jha, Raghbendra & Gaiha, Raghav & Pandey, Manoj K., 2012. "Net transfer benefits under India's rural employment guarantee scheme," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 296-311.
  11. Raghbendra Jha, 2013. "Welfare Schemes and Social Protection in India," ASARC Working Papers 2013-10, The Australian National University, Australia South Asia Research Centre.

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