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Does the employment guarantee scheme stabilize household incomes in rural India?

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  • Pasquale Scandizzo
  • Raghav Gaiha
  • Katsushi Imai

Abstract

Our analysis, based on the ICRISAT panel survey of villages in the semi-arid region of south India, confirms the income stabilizing effect of the Employment Guarantee Scheme in India. Variability of household income is measured by an unconditional variance of residuals of an income equation. A (variant) of Heckman's sample selection model is employed to allow for the endogeneity of EGS participation and to assess its income stabilizing role. The (instrumented) EGS participation reduces the residual variance of household income, implying consequent income stabilization.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 16 (2009)
Issue (Month): 12 ()
Pages: 1221-1225

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Handle: RePEc:taf:apeclt:v:16:y:2009:i:12:p:1221-1225

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  1. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, Econometric Society, vol. 47(1), pages 153-61, January.
  2. Datt, Gaurav & Ravallion, Martin, 1994. "Transfer Benefits from Public-Works Employment: Evidence for Rural India," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 104(427), pages 1346-69, November.
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Cited by:
  1. Raghbendra Jha & Hari K. Nagarajan & Kailash C. Pradhan, 2011. "Bribing to Circumvent Capture and Facilitate Participation in Social Programs: Evidence from Indian Villages," ASARC Working Papers, The Australian National University, Australia South Asia Research Centre 2011-13, The Australian National University, Australia South Asia Research Centre.
  2. Subhasish Dey & Katsushi S. Imai, 2014. "Workfare as "Collateral": The case of the National Rural Employment Guarantee Scheme (NREGS) in India," Discussion Paper Series, Research Institute for Economics & Business Administration, Kobe University DP2014-27, Research Institute for Economics & Business Administration, Kobe University.
  3. Laura Camfield, 2014. "Growing Up in Ethiopia and Andhra Pradesh: The Impact of Social Protection Schemes on Girls’ Roles and Responsibilities," The European Journal of Development Research, Palgrave Macmillan, Palgrave Macmillan, vol. 26(1), pages 107-123, January.

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