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Does the employment guarantee scheme stabilise household incomes in rural India?

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  • Pasquale Scandizzo
  • Raghav Gaiha
  • Katsushi Imai

Abstract

Our analysis, based on the ICRISAT panel survey of villages in the semi-arid region of south India, confirms the income stabilizing effect of the Employment Guarantee Scheme in India. Variability of household income is measured by an unconditional variance of residuals of an income equation. A (variant) of Heckman's sample selection model is employed to allow for the endogeneity of EGS participation and to assess its income stabilizing role. The (instrumented) EGS participation reduces the residual variance of household income, implying consequent income stabilization.

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Bibliographic Info

Paper provided by Economics, The University of Manchester in its series The School of Economics Discussion Paper Series with number 0706.

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Date of creation: 2007
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Handle: RePEc:man:sespap:0706

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  1. Vivek Ghosal & Prakash Loungani, 2000. "The Differential Impact of Uncertainty on Investment in Small and Large Businesses," The Review of Economics and Statistics, MIT Press, vol. 82(2), pages 338-343, May.
  2. 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.
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Cited by:
  1. Raghbendra Jha & Hari K. Nagarajan & Kailash C. Pradhan, 2011. "Bribing to Circumvent Capture and Facilitate Participation in Social Programs: Evidence from Indian Villages," ASARC Working Papers 2011-13, The Australian National University, Australia South Asia Research Centre.
  2. Laura Camfield, 2014. "Growing Up in Ethiopia and Andhra Pradesh: The Impact of Social Protection Schemes on Girls’ Roles and Responsibilities," The European Journal of Development Research, Palgrave Macmillan, vol. 26(1), pages 107-123, January.

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