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"Capture" of anti-poverty programs: An analysis of the National Rural Employment Guarantee Program in India

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  • Jha, Raghbendra
  • Bhattacharyya, Sambit
  • Gaiha, Raghav
  • Shankar, Shylashri

Abstract

Using pooled household level data for the Indian states of Rajasthan and Andhra Pradesh we find that the size of landholdings is a negative predictor of participation in the National Rural Employment Guarantee Program (NREGP). In state level analysis this pattern survives in Rajasthan but reverses in Andhra Pradesh where we notice a positive relationship. This paper examines whether this sign reversal in Andhra Pradesh is indicative of program capture in Andhra Pradesh and better targeting in Rajasthan. We compare land inequality, ratio of NREG and slack season agricultural wage rates, political interference, and geographical remoteness across the two states and conclude that program capture may be an issue in Andhra Pradesh, largely because of these reasons. We also find evidence of complementarity between NREGP and the Public Distribution System (PDS), implying that the real income transfer through food subsidy needs supplementation.

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  • Jha, Raghbendra & Bhattacharyya, Sambit & Gaiha, Raghav & Shankar, Shylashri, 2009. ""Capture" of anti-poverty programs: An analysis of the National Rural Employment Guarantee Program in India," Journal of Asian Economics, Elsevier, vol. 20(4), pages 456-464, September.
  • Handle: RePEc:eee:asieco:v:20:y:2009:i:4:p:456-464
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    Cited by:

    1. Arnab Basu, 2013. "Impact of rural employment guarantee schemes on seasonal labor markets: optimum compensation and workers’ welfare," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 11(1), pages 1-34, March.
    2. Abhiroop Mukhopadhyay, 2012. "The political economy of implementing the National Rural Employment Guarantee Scheme in India," Global Development Institute Working Paper Series esid-015-12, GDI, The University of Manchester.
    3. Songqing Jin & Yanyan Liu, 2013. "Welfare and Poverty Impacts of India’s National Rural Employment Guarantee Scheme: Evidence from Andhra Pradesh," Working Papers id:5530, eSocialSciences.
    4. Jha, Raghbendra & Gaiha, Raghav & Pandey, Manoj K., 2012. "Net transfer benefits under India's rural employment guarantee scheme," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 296-311.
    5. 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.
    6. Lagrange, Arthur Alik & Ravallion, Martin, 2012. "Evaluating workfare when the work is unpleasant : evidence for India's national rural employment guarantee scheme," Policy Research Working Paper Series 6272, The World Bank.
    7. Narayanamoorthy, A. & Bhattarai, Madhusudan, 2013. "Rural Employment Scheme and Agricultural Wage Rate Nexus: An Analysis across States," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(2013).
    8. Raghbendra Jha & Raghav Gaiha, 2012. "India's National Rural Employment Guarantee Scheme as it is - Interpreting the Official Report," ASARC Working Papers 2012-12, The Australian National University, Australia South Asia Research Centre.
    9. Deininger, Klaus & Liu, Yanyan, 2013. "Welfare and poverty impacts of India's national rural employment guarantee scheme : evidence from Andhra Pradesh," Policy Research Working Paper Series 6543, The World Bank.
    10. Raghbendra Jha, 2010. "Food security and small landholders in south Asia," ASARC Working Papers 2010-21, The Australian National University, Australia South Asia Research Centre.
    11. Erlend Berg & Sambit Bhattacharyya & D Rajasekhar & R Manjula, 2014. "Can Public Employment Schemes Increase Equilibrium Wages? Evidence from a Natural Experiment in India," The Centre for Market and Public Organisation 14/317, Department of Economics, University of Bristol, UK.
    12. Raghbendra Jha, 2013. "Welfare Schemes and Social Protection in India," ASARC Working Papers 2013-10, The Australian National University, Australia South Asia Research Centre.
    13. repec:bla:devpol:v:35:y:2017:i:3:p:397-417 is not listed on IDEAS
    14. Dutta, Puja & Murgai, Rinku & Ravallion., Martin & van de Walle, Dominique, 2012. "Does India's employment guarantee scheme guarantee employment ?," Policy Research Working Paper Series 6003, The World Bank.
    15. Raghbendra Jha & Simrit Kaur & Raghav Gaiha & Manoj K. Pandey, 2012. "NREGS and TPDS in Rajasthan and Madhya Pradesh: Complements or Substitutes?," ASARC Working Papers 2012-01, The Australian National University, Australia South Asia Research Centre.
    16. Shah, Deepak K. & Mohanty, Sovna, 2010. "Implementation of NREGA During Eleventh Plan in Maharashtra: Experiences, Challenges and Ways Forward," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 65(3).
    17. Das, Mousumi & Sharma, Ajay & Babu, Suresh Chandra, 2017. "Pathways from agriculture to nutrition in India: Implications for sustainable development goals," IFPRI discussion papers 1649, International Food Policy Research Institute (IFPRI).

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    Keywords

    Capture Poverty India;

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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