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Rural Public Works and Poverty Alleviation--the case of the employment guarantee scheme in Maharashtra

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Author Info
Raghav Gaiha
Katsushi Imai

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Abstract

This paper focuses on the poverty alleviating potential of the Employment Guarantee Scheme (EGS) in (the Indian state of) Maharashtra. A point of departure is the shift of emphasis from the static to the dynamic effects of the EGS targeting, measured in terms of individuals moving into and out of poverty, over the period 1979-84. An assessment is made of whether the EGS prevents the vulnerable from falling into poverty or enables the poor to move out of poverty, by distinguishing between the protective and promotional roles of the scheme. Simulations involving a wide range of poverty thresholds and different assumptions about the distribution of EGS earnings reveal that the poverty alleviating potential is limited in most cases. If, however, a larger EGS outlay is combined with more accurate targeting, the potential is substantially greater. Larger outlays are feasible if other rural public works are merged under the EGS. If this is combined with a reallocation in favour of backward areas, the targeting may improve substantially.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal International Review of Applied Economics.

Volume (Year): 16 (2002)
Issue (Month): 2 (April)
Pages: 131-151
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Handle: RePEc:taf:irapec:v:16:y:2002:i:2:p:131-151

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  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. [Downloadable!] (restricted)
  2. Besley, T. & Coate, S., 1991. "Workfare vs. Welfare: Incentive Arguments For Work Requirements In Poverty Allevation Programs," Papers 73, Princeton, Woodrow Wilson School - John M. Olin Program.
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  3. T. N. Srinivasan, 1994. "Destitution: A Discourse," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1842-1855, December. [Downloadable!] (restricted)
  4. Raghav Gaiha, 2000. "Do Anti-poverty Programmes Reach the Rural Poor in India?," Oxford Development Studies, Taylor and Francis Journals, vol. 28(1), pages 71-95. [Downloadable!] (restricted)
  5. Subramanian, Shankar & Deaton, Angus, 1996. "The Demand for Food and Calories," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 133-62, February. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Raghav Gaiha, 2004. "Is There a Case for the Employment Guarantee Scheme in India? Some Recent Evidence," ASARC Working Papers 2004-09, Australian National University, Australia South Asia Research Centre. [Downloadable!]
  2. 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. [Downloadable!] (restricted)
  3. Katsushi Imai, 2003. "The Employment Guarantee Scheme as a Social Safety Net - Poverty Dynamics and Poverty Alleviation," Economics Series Working Papers 149, University of Oxford, Department of Economics. [Downloadable!]
  4. Ravallion, Martin, 2005. "Evaluating anti-poverty programs," Policy Research Working Paper Series 3625, The World Bank. [Downloadable!]
    Other versions:
  5. Raghbendra Jha, 2002. "Rural Poverty in India: Structure, determinants and suggestions for policy reform," ASARC Working Papers 2002-07, Australian National University, Australia South Asia Research Centre. [Downloadable!]
  6. R Gaiha & K Imai, 2005. "A Review of the Employment Guarantee Scheme in India," The School of Economics Discussion Paper Series 0513, Economics, The University of Manchester. [Downloadable!]
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