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Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee

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  • Clément Imbert
  • John Papp

Abstract

Using the gradual roll out of a large rural workfare program in India, we estimate its e ect on private employment and wages by comparing districts that received the program earlier relative to those that received it later. Our results suggest that public sector hiring crowds out private sector work and increases private sector wages. We compute the implied welfare gains of the program by consumption quintile. Our calculations show that the welfare gains to the poor from the equilibrium increase in private sector wages are large in absolute terms and large relative to the gains received solely by program participants.

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Paper provided by Centre for the Study of African Economies, University of Oxford in its series CSAE Working Paper Series with number 2013-03.

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Date of creation: 2013
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Handle: RePEc:csa:wpaper:2013-03

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Cited by:
  1. Ashima Goyal & Akash Kumar Baikar, 2014. "Psychology, cyclicality or social programs: Rural wage and inflation dynamics in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers, Indira Gandhi Institute of Development Research, Mumbai, India 2014-014, Indira Gandhi Institute of Development Research, Mumbai, India.
  2. Lakshmi Iyer & Petia Topalova, 2014. "Poverty and Crime: Evidence from Rainfall and Trade Shocks in India," Harvard Business School Working Papers, Harvard Business School 14-067, Harvard Business School, revised Aug 2014.
  3. Xavier Fontaine & Katsunori Yamada, 2013. "Caste Comparisons: Evidence from India," ISER Discussion Paper, Institute of Social and Economic Research, Osaka University 0867, Institute of Social and Economic Research, Osaka University.
  4. Klonner, Stefan & Oldiges , Christian, 2014. "Safety Net for India's Poor or Waste of Public Funds? Poverty and Welfare in the Wake of the World's Largest Job Guarantee Program," Working Papers, University of Heidelberg, Department of Economics 0564, University of Heidelberg, Department of Economics.

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