Effect of employment guarantee on access to credit: Evidence from rural India
Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is the largest and most ambitious public works program for poverty alleviation, adopted by Government of India since independence. It was implemented in year 2006, starting with the first phase of 200 most backward districts in India. Two more consecutive phases were implemented to cover all rural regions in India but, even after almost 6 years of its implementation, it has not been adequately analyzed for its effect on various development indicators. This paper aims to study, whether participating in a typical employment guarantee program like MGNREGA, increases access to financial services and in particular, credit. Results provide evidence that, MGNREGA has been successful in self-selecting rural poor into participation and households participating longer in the program have been able to borrow more from formal sources. This paper also provides evidence that, increase in productivity of economic activities for participants, due to work in MGNREGA acts as a link between longer participation and increased access to formal credit.
|Date of creation:||14 Sep 2011|
|Date of revision:||13 Nov 2011|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bianchi, Milo, 2009.
"Credit Constraints, Entrepreneurial Talent, and Economic Development,"
Working Paper Series
UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Milo Bianchi, 2010. "Credit constraints, entrepreneurial talent, and economic development," Small Business Economics, Springer, vol. 34(1), pages 93-104, January.
- Milo Bianchi, 2010. "Credit Constraints, Entrepreneurial Talent, and Economic Development," Post-Print halshs-00754484, HAL.
- Milo Bianchi, 2010. "Credit Constraints, Entrepreneurial Talent, and Economic Development," Post-Print halshs-00636002, HAL.
- Carlo del Ninno & Kalanidhi Subbarao & Annamaria Milazzo, 2009.
"How to Make Public Works Work : A Review of the Experiences,"
World Bank Other Operational Studies
11718, The World Bank.
- Ninno, Carlo del & Subbarao, Kalanidhi & Milazzo, Annamaria, 2009. "How to make public works work : a review of the experiences," Social Protection and Labor Policy and Technical Notes 48567, The World Bank.
- Barrett , Christopher B & Carter , Michael R & Ikegami , Munenobu, 2008. "Poverty traps and social protection," Social Protection and Labor Policy and Technical Notes 42752, The World Bank.
- Rosenzweig, Mark R & Wolpin, Kenneth I, 1993.
"Credit Market Constraints, Consumption Smoothing, and the Accumulation of Durable Production Assets in Low-Income Countries: Investment in Bullocks in India,"
Journal of Political Economy,
University of Chicago Press, vol. 101(2), pages 223-44, April.
- Rosenzweig, Mark R. & Wolpin, Kenneth I., 1989. "Credit Market Constraints, Consumption Smoothing and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks in India," Bulletins 7487, University of Minnesota, Economic Development Center.
- Jonathan Morduch, 1995.
"Income Smoothing and Consumption Smoothing,"
Journal of Economic Perspectives,
American Economic Association, vol. 9(3), pages 103-114, Summer.
- Morduch, J., 1995. "Income Smoothing and Consumption Smoothing," Papers 512, Harvard - Institute for International Development.
- Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Harvard Institute of Economic Research Working Papers 1727, Harvard - Institute of Economic Research.
- Conning, Jonathan & Udry, Christopher, 2007.
"Rural Financial Markets in Developing Countries,"
Handbook of Agricultural Economics,
- Eswaran, Mukesh & Kotwal, Ashok, 1986. "Access to Capital and Agrarian Production Organisation," Economic Journal, Royal Economic Society, vol. 96(382), pages 482-98, June.
- Dercon, Stefan, 1998.
"Wealth, risk and activity choice: cattle in Western Tanzania,"
Journal of Development Economics,
Elsevier, vol. 55(1), pages 1-42, February.
- Stefan Dercon, 1996. "Wealth, risk and activity choices: cattle in Western Tanzania," CSAE Working Paper Series 1996-08, Centre for the Study of African Economies, University of Oxford.
- Stefan Dercon, 1996. "Wealth, risk and activity choices: cattle in Western Tanzania," Economics Series Working Papers WPS/1996-08, University of Oxford, Department of Economics.
- Datt, Gaurav & Ravallion, Martin, 1994. "Transfer Benefits from Public-Works Employment: Evidence for Rural India," Economic Journal, Royal Economic Society, vol. 104(427), pages 1346-69, November.
- Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6 National Bureau of Economic Research, Inc.
- Eswaran, Mukesh & Kotwal, Ashok, 1989. "Credit as insurance in agrarian economies," Journal of Development Economics, Elsevier, vol. 31(1), pages 37-53, July.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:34671. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.