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Local Leadership and Public Good: Evidence from The National Rural Employment Guarantee Scheme in India

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  • Ronit Mukherji

    (The University of British Columbia)

Abstract

The National Rural Employment Guarantee Scheme is unique in combining self-selection of beneficiaries through demand for work and decentralization of administrative power at the local level. However it falls into a pitfall associated with the decentralization mechanism: that of capture of funds by local leaders. Using nationally representative data I find how households which are closer to local leaders do much better in the NREG scheme during the different stages of its implementation as compared to households who are not. They have more job cards, they tend to work, among those working work more days and get faster wage payments. I argue how this is a result of favouritism by these local leaders leading to capture of funds.

Suggested Citation

  • Ronit Mukherji, 2019. "Local Leadership and Public Good: Evidence from The National Rural Employment Guarantee Scheme in India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(2), pages 311-329, June.
    • Handle: RePEc:spr:jqecon:v:17:y:2019:i:2:d:10.1007_s40953-018-0138-3
    DOI: 10.1007/s40953-018-0138-3
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    References listed on IDEAS

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    1. 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.
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    4. Dilip Mookherjee & Pranab K. Bardhan, 2000. "Capture and Governance at Local and National Levels," American Economic Review, American Economic Association, vol. 90(2), pages 135-139, May.
    5. Abhiroop Mukhopadhyay, 2012. "The political economy of implementing the National Rural Employment Guarantee Scheme in India," Global Development Institute Working Paper Series esid-015-12, GDI, The University of Manchester.
    6. Timothy Besley & Rohini Pande & Lupin Rahman & Vijayendra Rao, 2004. "The Politics of Public Good Provision: Evidence from Indian Local Governments," Journal of the European Economic Association, MIT Press, vol. 2(2-3), pages 416-426, 04/05.
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    8. Raabe, Katharina & Birner, Regina & Sekher, Madhushree & Gayathridevi, K.G. & Shilpi, Amrita & Schiffer, Eva, 2010. "How to overcome the governance challenges of implementing NREGA," IFPRI discussion papers 963, International Food Policy Research Institute (IFPRI).
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