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Disaggregated labor supply implications of guaranteed employment in India

Author

Listed:
  • Megan Sheahan

    (Industrial Economics)

  • Yanyan Liu

    (International Food Policy Research Institute)

  • Sudha Narayanan

    (Indira Gandhi Institute of Development Research)

  • Christopher B. Barrett

    (Cornell University)

Abstract

How do household labor supply decisions change with the entry of a massive employment guarantee program? This paper explores the household labor allocation effects - disaggregated by gender, age group, task, and season - associated with India's Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). Using three rounds of panel household survey data combined with project administrative recordsin Andhra Pradesh, our results suggest that participation in MGNREGS prompted an increase in overall household labor supply by about 12 days only in the summer slack labor season, mostly attributed to adult women. This expansion is not large enough to evade "crowding out" of some labor previously offered to non- MGNREGS labor tasks, and more so in the main agricultural seasons than the summer slack season. Time spent on paid and unpaid activities do not increase for youth and children in MGNREGS-participating households, suggesting no within-household substitution of labor towards younger members.

Suggested Citation

  • Megan Sheahan & Yanyan Liu & Sudha Narayanan & Christopher B. Barrett, 2020. "Disaggregated labor supply implications of guaranteed employment in India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2020-035, Indira Gandhi Institute of Development Research, Mumbai, India.
  • Handle: RePEc:ind:igiwpp:2020-035
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    References listed on IDEAS

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    More about this item

    Keywords

    labor; employment guarantee; public works; gender; MGNREGS; India;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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