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Economic Analysis of MGNREGA in the Drought–prone States of Karnataka, Rajasthan and Irrigation–dominated State of Andhra Pradesh

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  • Murthy, P.S. Srikantha
  • Indumati, S.

Abstract

Using macro level data on MGNREGA performance in drought-prone states of Karnataka and Rajasthan as well as in irrigation-dominated state of Andhra Pradesh, this study has revealed that the impact of MGNREGA wage on the economic scarcity of labour is relatively modest when compared with the impact of hike in non-farm wages. Even though the provision of food security through public distribution system has contributed to the economic scarcity of labour, the relative hike in non-farm wages is contributing to higher economic scarcity of labour rather than PDS and MGNREGA wages. The study has suggested subsidies for farm mechanization should be provided in order to sustain food and livelihood security in the droughtprone as well as irrigation-dominant states of India.

Suggested Citation

  • Murthy, P.S. Srikantha & Indumati, S., 2011. "Economic Analysis of MGNREGA in the Drought–prone States of Karnataka, Rajasthan and Irrigation–dominated State of Andhra Pradesh," Agricultural Economics Research Review, Agricultural Economics Research Association (India), issue 2011.
  • Handle: RePEc:ags:aerrae:119405
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    File URL: http://purl.umn.edu/119405
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    References listed on IDEAS

    as
    1. Vinoj Abraham, 2008. "Employment growth in rural India: Distress driven?," Centre for Development Studies, Trivendrum Working Papers 404, Centre for Development Studies, Trivendrum, India.
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    More about this item

    Keywords

    MGNREGA; Economic analysis; MGNREGA impact on labour supply; Economic scarcity of labour; Agricultural and Food Policy; I38; H53;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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