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Workfare and Vulnerability in Rural India

Author

Listed:
  • Raghbendra Jha
  • Woojin Kang
  • Hari K. Nagarajan
  • Anirudh Taga

Abstract

Using a unique panel data for rural India for the periods 1999 and 2006 this paper models vulnerability to poverty in the context of local governance and the introduction of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). We quantify household vulnerability in rural India in 1999 and 2006, investigate the determinants of ex post poverty as well as ex ante vulnerability, assess the role of ex ante vulnerability on poverty shift during the sample periods (i.e. movement into/out of poverty) and finally, examine how the effects of the determinants of vulnerability vary at different points across the vulnerability distribution. We conclude that exposure to MGNREGS has reduced the incidence of poverty. Although chronic poverty is relatively small the high incidence of transient poverty underscores the importance of covariate and idiosyncratic shocks. Household vulnerability across the distribution of such vulnerability is also investigated. A number of factors affect such vulnerability across this distribution. In particular, this paper is the first to investigate the role of village governance in affecting household poverty and vulnerability.

Suggested Citation

  • Raghbendra Jha & Woojin Kang & Hari K. Nagarajan & Anirudh Taga, 2019. "Workfare and Vulnerability in Rural India," ASARC Working Papers 2019-01, The Australian National University, Australia South Asia Research Centre.
    • Handle: RePEc:pas:asarcc:2019-01
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    File URL: https://crawford.anu.edu.au/acde/asarc/pdf/papers/2019/WP2019-01.pdf
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    References listed on IDEAS

    as
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    7. Liu, Yanyan & Deininger, Klaus W., 2010. "Poverty Impacts of India's National Rural Employment Guarantee Scheme: Evidence from Andhra Pradesh," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 62185, Agricultural and Applied Economics Association.
    8. Gaiha, Raghav & Deolalikar, Anil B, 1993. "Persistent, Expected and Innate Poverty: Estimates for Semi-arid Rural South India, 1975-1984," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 17(4), pages 409-421, December.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Vulnerability; Poverty; Covariate and Idiosyncratic shocks; REDS data; India;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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