Targeting Accuracy of the NREG: Evidence from Madhya Pradesh and Tamil Nadu
AbstractThis paper focuses on the targeting accuracy of NREG in two Indian states, Madhya Pradesh (MP) and Tamil Nadu (TN), based on household data for 2008–09. In order to overcome the difficulties arising from the use of a headcount index and a specific poverty threshold, stochastic dominance tests are used. Madhya Pradesh demonstrated much better targeting than Tamil Nadu in terms of the FGT class of poverty indices over a wide range of poverty thresholds. This finding is significant as the proportion of poor is twice as high in the former as in the latter. It raises doubts about prevailing views that there is greater underprovision of jobs under NREG in the poorer states. That the selfselection of the poor was undermined and (relatively) affluent crowded in because of the high NREG wage (relative to the agricultural wage) raises a serious concern. Another serious concern is that the transfer benefits in the form of additional income to the poor were small mainly due to short spells of work, considerably lower than the maximum number of days permitted under this scheme.
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Bibliographic InfoPaper provided by The Australian National University, Australia South Asia Research Centre in its series ASARC Working Papers with number 2010-19.
Date of creation: 2010
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Employment Guarantee; Poverty; Self-Selection; Wage; India;
Find related papers by JEL classification:
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
- 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-2010-10-23 (All new papers)
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.:
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- Raghav Gaiha & Vani Kulkarni & Manoj Pandey & Katsushi Imai, 2009.
"National rural employment guarantee scheme, poverty and prices in rural India,"
The School of Economics Discussion Paper Series
0908, Economics, The University of Manchester.
- 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.
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