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Labor Market Impacts of a Large-Scale Public Works Program: Evidence from the Indian Employment Guarantee Scheme

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  • Zimmermann, Laura

    ()
    (University of Michigan)

Abstract

Recent years have seen an increasing interest in using public-works programs as anti-poverty measures in developing countries. This paper analyzes the rural labor market impacts of the Indian National Rural Employment Guarantee Scheme, one of the most ambitious programs of its kind, by using a regression discontinuity design. I find that private-sector wages increase substantially for women, but not for men, and that these effects are concentrated during the main agricultural season. In contrast, there is little evidence for negative private employment effects.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6858.

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Length: 54 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6858

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Related research

Keywords: public works program; National Rural Employment Guarantee Scheme; NREGA; NREGS; India; regression discontinuity design;

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References

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  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.
  2. Arnab K. Basu, 2002. "Oligopsonistic Landlords, Segmented Labor Markets, and the Persistence of Tied-Labor Contracts," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(2), pages 438-453.
  3. Azam, Mehtabul, 2012. "The Impact of Indian Job Guarantee Scheme on Labor Market Outcomes: Evidence from a Natural Experiment," IZA Discussion Papers 6548, Institute for the Study of Labor (IZA).
  4. Basu, Arnab K., 2011. "Impact of Rural Employment Guarantee Schemes on Seasonal Labor Markets: Optimum Compensation and Workers' Welfare," IZA Discussion Papers 5701, Institute for the Study of Labor (IZA).
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Cited by:
  1. Chaudhuri, Sarbajit & Ghosh Dastidar, Krishnendu, 2014. "Corruption, efficiency wage and union leadership," MPRA Paper 57050, University Library of Munich, Germany.
  2. Erlend Berg & Sambit Bhattacharyya & D Rajasekhar & R Manjula, 2014. "Can Public Employment Schemes Increase Equilibrium Wages? Evidence from a Natural Experiment in India," The Centre for Market and Public Organisation 13/317, Department of Economics, University of Bristol, UK.
  3. Deininger, Klaus & Liu, Yanyan, 2013. "Welfare and poverty impacts of India’s national rural employment guarantee scheme: Evidence from Andhra Pradesh:," IFPRI discussion papers 1289, International Food Policy Research Institute (IFPRI).
  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 0564, University of Heidelberg, Department of Economics.
  5. Thiemo Fetzer, 2014. "Can Workfare Programs Moderate Violence? Evidence from India," STICERD - Economic Organisation and Public Policy Discussion Papers Series 53, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  6. 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.

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