Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Impact of Indian Job Guarantee Scheme on Labor Market Outcomes: Evidence from a Natural Experiment

Contents:

Author Info

  • Azam, Mehtabul

    ()
    (Oklahoma State University)

Abstract

Public works programs, aimed at building a strong social safety net through redistribution of wealth and generation of meaningful employment, are becoming increasingly popular in developing countries. The National Rural Employment Guarantee Act (NREGA), enacted in August 2005, is one such program in India. This paper assesses causal impacts (Intent-to-Treat) of NREGA on public works participation, labor force participation, and real wages of casual workers by exploiting its phased implementation across Indian districts. Using nationally representative data from Indian National Sample Surveys (NSS) and Difference-in-Difference framework, we find that there is a strong gender dimension to the impacts of NREGA: it has a positive impact on the labor force participation and this impact is mainly driven by a much sharper impact on female labor force participation. Similarly, NREGA has a significant positive impact on the wages of female casual workers-real wages of female casual workers increased 8% more in NREGA districts compared with the increase experienced in non-NREGA districts. However, the impact of NREGA on wages of casual male workers has only been marginal (about 1%). Using data from pre-NREGA period, we also perform falsification exercise to demonstrate that the main conclusions are not confounded by pre-existing differential trends between NREGA and non-NREGA districts.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://ftp.iza.org/dp6548.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6548.

as in new window
Length: 37 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6548

Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org

Order Information:
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Email:

Related research

Keywords: difference-in-difference; intent-to-treat; NREGA; rural India;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Hoddinott, John & Skoufias, Emmanual, 2003. "The impact of Progresa on food consumption," FCND briefs 150, International Food Policy Research Institute (IFPRI).
  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.
  3. Guido M. Imbens & Jeffrey M. Wooldridge, 2008. "Recent Developments in the Econometrics of Program Evaluation," NBER Working Papers 14251, National Bureau of Economic Research, Inc.
  4. Staubli, Stefan, 2011. "The impact of stricter criteria for disability insurance on labor force participation," Journal of Public Economics, Elsevier, Elsevier, vol. 95(9), pages 1223-1235.
  5. Basu, Arnab K. & Chau, Nancy H. & Kanbur, Ravi, 2006. "A Theory of Employment Guarantees: Contestability, Credibility and Distributional Concerns," Working Papers, Cornell University, Department of Applied Economics and Management 127048, Cornell University, Department of Applied Economics and Management.
  6. Brian Bell & Richard Blundell & John Van Reenen, 1999. "Getting the unemployed back to work: the role of targeted wage subsidies," IFS Working Papers, Institute for Fiscal Studies W99/12, Institute for Fiscal Studies.
  7. Ninno, Carlo del & Subbarao, Kalanidhi & Milazzo, Annamaria, 2009. "How to make public works work : a review of the experiences," Social Protection Discussion Papers 48567, The World Bank.
  8. David Cutler & Winnie Fung & Michael Kremer & Monica Singhal & Tom Vogl, 2010. "Early-Life Malaria Exposure and Adult Outcomes: Evidence from Malaria Eradication in India," American Economic Journal: Applied Economics, American Economic Association, American Economic Association, vol. 2(2), pages 72-94, April.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Liu, Yanyan & Barrett, Christopher B., 2012. "Heterogeneous pro–poor targeting in India’s Mahatma Gandhi National Rural Employment Guarantee Scheme:," IFPRI discussion papers, International Food Policy Research Institute (IFPRI) 1218, International Food Policy Research Institute (IFPRI).
  2. Thiemo Fetzer, 2014. "Can Workfare Programs Moderate Violence? Evidence from India," STICERD - Economic Organisation and Public Policy Discussion Papers Series, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE 53, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  3. Zimmermann, Laura, 2012. "Labor Market Impacts of a Large-Scale Public Works Program: Evidence from the Indian Employment Guarantee Scheme," IZA Discussion Papers 6858, Institute for the Study of Labor (IZA).
  4. Clement Imbert & John Papp, 2013. "Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee," Economics Series Working Papers WPS/2013-03, University of Oxford, Department of Economics.
  5. Imbert, Clément, 2013. "Travailler pour être aidé? L’emploi garanti en Inde," Opuscules du CEPREMAP, CEPREMAP, number 33, May.
  6. Deininger, Klaus & Liu, Yanyan, 2013. "Welfare and poverty impacts of India’s national rural employment guarantee scheme: Evidence from Andhra Pradesh:," IFPRI discussion papers, International Food Policy Research Institute (IFPRI) 1289, International Food Policy Research Institute (IFPRI).
  7. Gupta, Bhanu & Mukhopadhyay, Abhiroop, 2014. "Local Funds and Political Competition: Evidence from the National Rural Employment Guarantee Scheme in India," IZA Discussion Papers 8196, Institute for the Study of Labor (IZA).
  8. repec:bri:cmpowp:13/317 is not listed on IDEAS
  9. 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 0564, University of Heidelberg, Department of Economics.
  10. Bhargava, Anil, 2013. "The Impact of India’s Rural Employment Guarantee on Demand for Agricultural Technology," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C., Agricultural and Applied Economics Association 150163, Agricultural and Applied Economics Association.
  11. Shreyasee Das & Abhilasha Singh, 2013. "The Impact of Temporary Work Guarantee Programs on Children's Education: Evidence from the Mahatma Gandhi National Rural Guarantee Act from India," Working Papers 13-03, UW-Whitewater, Department of Economics.
  12. Deininger, Klaus & Liu, Yanyan, 2013. "Welfare and poverty impacts of India's national rural employment guarantee scheme : evidence from Andhra Pradesh," Policy Research Working Paper Series 6543, The World Bank.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp6548. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.