Targeting versus Universalism: An Evaluation of Indirect Effects of the Employment Guarantee Scheme in India
AbstractAlthough a workfare scheme is potentially a cost-effective poverty alleviation scheme as it attracts only the poor who have an incentive to do unskilled manual works, an investigation of the ICRISAT data in India clarifies that the Employment Guarantee Scheme was mistargeted, i.e., a substantial share of the non-poor also participated. The comparison of the EGS and universalism through the villagelevel SAM (Social Accounting Matrix) model reveals that the former is neither efficient nor equitable than the latter unless the state government carefully designs the scheme so that the EGS assets, such as irrigation facilities, are made accessible to the poor without undermining their positive effects on agricultural productivity.
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Bibliographic InfoPaper provided by Department of Economics, Royal Holloway University of London in its series Royal Holloway, University of London: Discussion Papers in Economics with number 04/07.
Length: 30 pages
Date of creation: Jun 2004
Date of revision: Jun 2004
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Other versions of this item:
- Imai, Katsushi, 2007. "Targeting versus universalism: An evaluation of indirect effects of the Employment Guarantee Scheme in India," Journal of Policy Modeling, Elsevier, vol. 29(1), pages 99-113.
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-08-09 (All new papers)
- NEP-CWA-2004-08-09 (Central & Western Asia)
- NEP-PBE-2004-08-09 (Public Economics)
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