National rural employment guarantee scheme, poverty and prices in rural India
AbstractThe objective of this analysis is mainly to construct an intuitive measure of the performance of the National Rural Employment Guarantee Scheme (NREGS) in India -a nation-wide poverty alleviation programme which was introduced in 2005. The focus is on excess demand at the district level. Some related issues addressed are (i) whether excess demand responds to poverty, and (ii) whether recent hikes in NREGS wages are inflationary. Our analysis confirms responsiveness of excess demand to poverty. Also, apprehensions expressed about the inflationary potential of recent hikes in NREGS wages have been confirmed. More importantly, higher NREGS wages are likely to undermine self-selection of the poor in it. So, in order to realise the poverty reducing potential of this scheme, a policy imperative is to ensure a speedier matching of demand and supply in districts that are highly poverty prone, as also to avoid the trade-offs between poverty reduction and inflation.
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Bibliographic InfoPaper provided by Economics, The University of Manchester in its series The School of Economics Discussion Paper Series with number 0908.
Date of creation: 2009
Date of revision:
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Other versions of this item:
- Raghav Gaiha & Vani S. Kulkarni & Manoj K. Pandey & Katsushi S. Imai, 2009. "National Rural Employment Guarantee Scheme, Poverty and Prices in Rural India," ASARC Working Papers 2009-03, The Australian National University, Australia South Asia Research Centre.
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
- I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-23 (All new papers)
- NEP-CWA-2009-05-23 (Central & Western Asia)
- NEP-DEV-2009-05-23 (Development)
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- Raghbendra Jha & Raghav Gaiha & Shylashri Shankar & Manoj K. Pandey, 2010.
"Targeting Accuracy of the NREG: Evidence from Madhya Pradesh and Tamil Nadu,"
ASARC Working Papers
2010-19, The Australian National University, Australia South Asia Research Centre.
- Raghbendra Jha & Raghav Gaiha & Shylashri Shankar & Manoj K Pandey, 2013. "Targeting Accuracy of the NREG: Evidence from Madhya Pradesh and Tamil Nadu," The European Journal of Development Research, Palgrave Macmillan, vol. 25(5), pages 758-777, December.
- Clément Imbert & John Papp, 2012. "Equilibrium Distributional Impacts of Government. Employment Programs: Evidence from India's Employment Guarantee," PSE Working Papers halshs-00680451, HAL.
- repec:hal:wpaper:halshs-00680451 is not listed on IDEAS
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