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Short-term Migration Rural Workfare Programs and Urban Labor Markets - Evidence from India

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  • Imbert, Clement
  • Papp, John

Abstract

This paper provides some of the rst evidence that rural development policies can have fundamental eects on the reallocation of labor between rural and urban areas. It studies the spillover eects of the world's largest rural workfare program, India's rural employment guarantee. We nd that the workfare program has substantial consequences: it reduces short-term (or seasonal) migration to urban areas by 9% and increases wages for manual, short-term work in urban areas by 6%. The implied elasticity of unskilled wages with respect to short-term migration is high (-0.7).

Suggested Citation

  • Imbert, Clement & Papp, John, 2016. "Short-term Migration Rural Workfare Programs and Urban Labor Markets - Evidence from India," Economic Research Papers 269578, University of Warwick - Department of Economics.
  • Handle: RePEc:ags:uwarer:269578
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Manisha Shah & Bryce Millett Steinberg, 2015. "Workfare and Human Capital Investment: Evidence from India," NBER Working Papers 21543, National Bureau of Economic Research, Inc.
    2. David Lagakos & Mushfiq Mobarak & Michael Waugh, 2018. "The Welfare Effects of Encouraging Rural-Urban Migration," Working Papers 2018-002, Human Capital and Economic Opportunity Working Group.
    3. Bahal, G. & Shrivastava, A., 2016. "Labor Market Effects of Inconsistent Policy Interventions: Evidence from India’s Employment Guarantees," Cambridge Working Papers in Economics 1669, Faculty of Economics, University of Cambridge.
    4. Agha Ali Akram & Shyamal Chowdhury & Ahmed Mushfiq Mobarak, 2017. "Effects of Emigration on Rural Labor Markets," NBER Working Papers 23929, National Bureau of Economic Research, Inc.
    5. Deininger,Klaus W. & Nagarajan,Hari Krishnan & Singh,Sudhir K. & Deininger,Klaus W. & Nagarajan,Hari Krishnan & Singh,Sudhir K., 2016. "Short-term effects of India's employment guarantee program on labor markets and agricultural productivity," Policy Research Working Paper Series 7665, The World Bank.
    6. Bahal, G., 2017. "Estimating Transfer Multiplier using Spending on Rural Development Programs in India," Cambridge Working Papers in Economics 1709, Faculty of Economics, University of Cambridge.
    7. Imbert, Clément & Papp, John, 2018. "Costs and Benefits of Seasonal Migration : Evidence from India," The Warwick Economics Research Paper Series (TWERPS) 1161, University of Warwick, Department of Economics.
    8. Jamal Bouoiyour & Amal Miftah & Christophe Muller, 2017. "Maghreb Rural-Urban Migration: The Movement to Morocco’s Towns," Working Papers 1082, Economic Research Forum, revised 04 Oct 2017.
    9. Sheahan, Megan & Liu, Yanyan & Narayanan, Sudha & Barrett, Christopher B., 2015. "Disaggregated labor supply implications of guaranteed employment in India," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 237345, Agricultural and Applied Economics Association.

    More about this item

    Keywords

    Financial Economics;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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