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Net transfer benefits under India's rural employment guarantee scheme

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  • Jha, Raghbendra
  • Gaiha, Raghav
  • Pandey, Manoj K.

Abstract

This paper explores the important but relatively neglected issue of real income transfers, net of the opportunity cost of time, under India's National Rural Employment Guarantee Scheme. We use representative household level primary data for three states, Rajasthan, Andhra Pradesh and Maharashtra to depict various individual and social characteristics of the population in these states as well as those of the participants in the NREGS. We also model the stochastic dominance comparisons of per capita monthly expenditures of participants with and without alternative employment opportunities in the absence of NREG as well as the determinants of such opportunities. As an approximate measure of the net transfer benefits under NREGS, we consider shares of NREG earnings net of the opportunity cost of time in household income. The distribution of such net transfers across household characteristics as well as the distribution of benefits across villages in the three states is also discussed. In general, net transfers under the NREGS are quite modest. Why accurate measurement of such transfers matters in an anti-poverty strategy is elaborated.

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Bibliographic Info

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

Volume (Year): 34 (2012)
Issue (Month): 2 ()
Pages: 296-311

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Handle: RePEc:eee:jpolmo:v:34:y:2012:i:2:p:296-311

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Web page: http://www.elsevier.com/locate/inca/505735

Related research

Keywords: NREG; Net Transfer benefit; Stochastic dominance;

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References

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  1. Martin Ravallion & Gaurav Datt, 1995. "Is Targeting Through a Work Requirement Efficient? Some Evidence for Rural India," Development Research Unit Working Paper Series archive-41, Monash University, Department of Economics.
  2. Lipton, Michael & Ravallion, Martin, 1993. "Poverty and policy," Policy Research Working Paper Series 1130, The World Bank.
  3. Raghbendra Jha & Sambit Bhattacharyya & Raghav Gaiha, 2010. "Social Safety Nets and Nutrient Deprivation: An Analysis of the National Rural Employment Guarantee Program and the Public Distribution System in India," ASARC Working Papers 2010-04, The Australian National University, Australia South Asia Research Centre.
  4. 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.
  5. Jha, Raghbendra & Gaiha, Raghav & Sharma, Anurag, 2009. "Calorie and Micronutrient Deprivation and Poverty Nutrition Traps in Rural India," World Development, Elsevier, vol. 37(5), pages 982-991, May.
  6. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-64, July.
  7. Subramanian, S. & Deaton, A., 1994. "The Demand for Food and Calories," Papers 175, Princeton, Woodrow Wilson School - Development Studies.
  8. Ravallion, Martin, 1999. "Appraising Workfare," World Bank Research Observer, World Bank Group, vol. 14(1), pages 31-48, February.
  9. 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.
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Cited by:
  1. Murgai, Rinku & Ravallion, Martin & van de Walle, Dominique, 2013. "Is workfare cost-effective against poverty in a poor labor-surplus economy?," Policy Research Working Paper Series 6673, The World Bank.
  2. 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.

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