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Welfare and poverty impacts of India's national rural employment guarantee scheme : evidence from Andhra Pradesh

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  • Deininger, Klaus
  • Liu, Yanyan

Abstract

This paper uses a three-round 4,000-household panel from Andhra Pradesh together with administrative data to explore short and medium-term poverty and welfare effects of the National Rural Employment Guarantee Scheme. Triple difference estimates suggest that participants significantly increase consumption (protein and energy intake) in the short run and accumulate more nonfinancial assets in the medium term. Direct benefits exceed program-related transfers and are most pronounced for scheduled castes and tribes and households supplying casual labor. Asset creation via program-induced land improvements is consistent with a medium-term increase in assets by nonparticipants and increases in wage income in excess of program cost.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6543.

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Date of creation: 01 Jul 2013
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Handle: RePEc:wbk:wbrwps:6543

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Related research

Keywords: Housing&Human Habitats; Rural Poverty Reduction; Labor Policies; Labor Markets; Poverty Monitoring&Analysis;

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  1. Raghbendra Jha & Sambit Bhattacharyya & Raghav Gaiha & Shylashri Shankar, 2008. "Capture of Anti-Poverty Programs: An Analysis of the National Rural Employment Guarantee Program in India," ASARC Working Papers 2008-07, The Australian National University, Australia South Asia Research Centre.
  2. Raghbendra Jha & Sambit Bhattacharyya & Raghav Gaiha, 2010. "Social Safety Nets and Nutrient Deprivation: An Analysis of the National Rural Employment Guarantee Program and the Public Distribution System in India," ASARC Working Papers 2010-04, The Australian National University, Australia South Asia Research Centre.
  3. K. Subbarao, 1997. "Public Works as an Anti-Poverty Program: An Overview of Cross-Country Experience," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 678-683.
  4. Richard K. Crump & V. Joseph Hotz & Guido W. Imbens & Oscar A. Mitnik, 2004. "Dealing with Limited Overlap in Estimation of Average Treatment Effects," Working Papers 0716, University of Miami, Department of Economics, revised 12 Jun 2007.
  5. 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).
  6. Afridi, Farzana & Mukhopadhyay, Abhiroop & Sahoo, Soham, 2012. "Female Labour Force Participation and Child Education in India: The Effect of the National Rural Employment Guarantee Scheme," IZA Discussion Papers 6593, Institute for the Study of Labor (IZA).
  7. 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).
  8. Paul Niehaus & Sandip Sukhtankar, 2013. "Corruption Dynamics: The Golden Goose Effect," American Economic Journal: Economic Policy, American Economic Association, vol. 5(4), pages 230-69, November.
  9. Alberto Abadie & Guido W. Imbens, 2006. "Large Sample Properties of Matching Estimators for Average Treatment Effects," Econometrica, Econometric Society, vol. 74(1), pages 235-267, 01.
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