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Targeting versus universalism: An evaluation of indirect effects of the Employment Guarantee Scheme in India

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  • Imai, Katsushi

Abstract

Although a workfare scheme is potentially a cost-effective poverty alleviation scheme as it attracts only the poor who have an incentive to do unskilled manual works, an investigation of the ICRISAT data in India clarifies that the Employment Guarantee Scheme was mistargeted, i.e., a substantial share of the non-poor also participated. The comparison of the EGS and universalism through the villagelevel SAM (Social Accounting Matrix) model reveals that the former is neither efficient nor equitable than the latter unless the state government carefully designs the scheme so that the EGS assets, such as irrigation facilities, are made accessible to the poor without undermining their positive effects on agricultural productivity.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Policy Modeling.

Volume (Year): 29 (2007)
Issue (Month): 1 ()
Pages: 99-113
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Handle: RePEc:eee:jpolmo:v:29:y:2007:i:1:p:99-113

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  1. Datt, Gaurav & Ravallion, Martin, 1994. "Transfer Benefits from Public-Works Employment: Evidence for Rural India," Economic Journal, Royal Economic Society, vol. 104(427), pages 1346-69, November.
  2. Bigman, David & Srinivasan, P. V., 2002. "Geographical targeting of poverty alleviation programs: methodology and applications in rural India," Journal of Policy Modeling, Elsevier, vol. 24(3), pages 237-255, June.
  3. BALAND, Jean-Marie & DREZE, Jean & LERUTH, Luc, 1998. "Daily wages and piece rates in agrarian economies," CORE Discussion Papers 1998058, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Raghav Gaiha, 2000. "On the Targeting of the Employment Guarantee Scheme in the Indian State of Maharashtra," Economic Change and Restructuring, Springer, vol. 33(3), pages 203-219, October.
  5. Giovanni Andrea Cornia & Frances Stewart, 1993. "Two Errors of Targeting," Innocenti Occasional Papers, Economic Policy Series iopeps93/54, UNICEF Innocenti Research Centre.
  6. Besley, Timothy & Coate, Stephen, 1992. "Workfare versus Welfare Incentive Arguments for Work Requirements in Poverty-Alleviation Programs," American Economic Review, American Economic Association, vol. 82(1), pages 249-61, March.
  7. Ravallion, Martin, 1991. "Reaching the Rural Poor through Public Employment: Arguments, Evidence, and Lessons from South Asia," World Bank Research Observer, Oxford University Press, vol. 6(2), pages 153-75, July.
  8. Christopher Barrett & Daniel Clay, 2003. "How Accurate is Food-for-Work Self-Targeting in the Presence of Imperfect Factor Markets? Evidence from Ethiopia," The Journal of Development Studies, Taylor and Francis Journals, vol. 39(5), pages 152-180.
  9. Gaiha, Raghav, 2000. " On the Targeting of the Employment Guarantee Scheme in the Indian State of Maharashtra," Economic Change and Restructuring, Springer, vol. 33(3), pages 203-19.
  10. Narayana, N. S. S. & Parikh, Kirit S. & Srinivasan, T. N., 1988. "Rural works programs in India: Costs and benefits," Journal of Development Economics, Elsevier, vol. 29(2), pages 131-156, September.
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