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Guaranteed Employment in Rural India: Intrahousehold Labor and Resource Allocation Consequences

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  • Jorge Luis García

Abstract

I investigate the intrahousehold labor and resource allocation consequences of an employment guarantee targeting rural households in India. The guarantee insures household earnings, replacing women as added workers and shutting down a motive for saving. Despite sizable program-job take-up, the guarantee decreases participation in other working activities and, thus, labor force participation of married women and total time worked by their husbands. The guarantee accounts for up to 30 percent of a recent countrywide decrease in rural female labor force participation. Though it increases household consumption, the guarantee reduces the command of women's household earnings and, thereby, their well-being.

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  • Jorge Luis García, 2026. "Guaranteed Employment in Rural India: Intrahousehold Labor and Resource Allocation Consequences," American Economic Journal: Economic Policy, American Economic Association, vol. 18(2), pages 34-77, May.
    • Handle: RePEc:aea:aejpol:v:18:y:2026:i:2:p:34-77
    DOI: 10.1257/pol.20220332
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    More about this item

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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