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MGNREGS and Rural Labour Market in India

In: Development Challenges of India After Twenty Five Years of Economic Reforms

Author

Listed:
  • Ashok Pankaj

    (Council for Social Development)

  • Mondira Bhattacharya

    (Council for Social Development)

Abstract

With a minimum guarantee of 100 days of employment to every rural household whose adult members volunteer to do unskilled manual work at a prescribed minimum wage rate, and about one-fourth of the total rural households actually availing of this guaranteed employment every year since 2008, the MGNREGS has created unmistakable impacts on India’s labour market, especially rural, through employment creation in public works programme, provision of minimum wage, and multiplier effects. For example, there has been a rise in wages in nominal and real terms. Male–female and rural–urban wage disparities have come down. There has been a dent in the largely monopsonic rural labour market and empowerment of the casual labour through their increased bargaining position. This paper examines some of the labour market impacts of the MGNREGS.

Suggested Citation

  • Ashok Pankaj & Mondira Bhattacharya, 2020. "MGNREGS and Rural Labour Market in India," India Studies in Business and Economics, in: Nripendra Kishore Mishra (ed.), Development Challenges of India After Twenty Five Years of Economic Reforms, pages 247-259, Springer.
    • Handle: RePEc:spr:isbchp:978-981-15-8265-3_13
    DOI: 10.1007/978-981-15-8265-3_13
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