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Labor Market Effects of Social Programs: Evidence from India's Employment Guarantee

  • Clement Imbert
  • John Papp

Using the gradual roll out of a large rural workfare program in India, we estimate its effect on private employment and wages by comparing districts that received the program earlier relative to those that received it later. Our results suggest that public sector hiring crowds out private sector work and increases private sector wages. We compute the implied welfare gains of the program by consumption quintile. Our calculations show that the welfare gains to the poor from the equilibrium increase in private sector wages are large in absolute terms and large relative to the gains received solely by program participants.

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File URL: http://www.economics.ox.ac.uk/materials/papers/12733/csae-wps-2013-03.pdf
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Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number WPS/2013-03.

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Date of creation: 04 Feb 2013
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Handle: RePEc:oxf:wpaper:wps/2013-03
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